Abu Dhabi cancels Guggenheim Tender
Abu Dhabi's government-owned Tourism Development and Investment Co (TDIC) has cancelled a tender related to the construction of the Guggenheim museum in the UAE capital, it said in a statement on Sunday.
October 23, 2011 2:24 by Reuters
The 450,000-sq foot museum will be the world’s largest and is designed by architect Frank Gehry.
“Due to a review of its project procurement strategy, TDIC has recalled the concrete works tender of the Guggenheim Abu Dhabi museum,” the statement said. “This work, which forms a part of the multiple work contracts that make up the project, will be retendered at a future date.”
In March, competing companies submitted bids for the 400 million dirhams ($108.9 million) contract, according to London-based Middle East Economic Digest (MEED), including UAE’s Al Habtoor-Leighton Group, Dubai builder Arabtec , Saudi Oger, Egypt’s Orascom Construction and South Korea’s Samsung C&T.
TDIC recently completed roadshows for the potential bond issue, but delayed the sale due to market conditions.
The loss-making firm also cut its 2011 budget by 5 billion dirhams (1.4 billion) as part of a strategy to prolong its project delivery schedule.
Guggenheim and Louvre museums are planned for the Saadiyat Island in Abu Dhabi, which is a $27 billion art and culture project. ($1 = 3.673 UAE Dirhams) (Reporting by Praveen Menon and Matt Smith, Editing by Dinesh Nair)