Pledge to pay contractors

 

The government of Abu Dhabi said yesterday it had taken “appropriate steps” to make sure its entities would pay off money owed to contractors working on billions of dollars worth of construction projects in the oil-rich emirate.

Construction companies, consultancy and architectural firms have faced slow and irregular payments from some Abu Dhabi government-linked entities, in some cases leading to severe financial difficulties.

No total value for the amount owed by the Abu Dhabi government and its entities to contractors has been made public, but it is likely to be several billion dollars, according to estimates by three sources in the construction industry.

Abu Dhabi last year launched a review of spending that saw major projects pushed back. – (Reuters)