JOHANNESBURG, (Reuters) – South Africa’s biggest construction firm Murray & Roberts has pulled out of a 5 billion rand ($544.8 million) contract in Dubai after failing to finalise “acceptable” terms with a client, it said on Thursday.
The project, which was to build the Dubai International Airport Concourse 3, was awarded to the Al Habtoor Murray & Roberts Takenaka Joint Venture last December by the Dubai Civil Aviation.
“The parties have concluded that a mutually acceptable contract is not currently possible,” Murray & Roberts said in a statement.
The firm’s 40 percent share of the contract was worth about 5 billion rand in revenues over the next three years, the company said, adding that limited work had been undertaken on the project and parties would work together to reach a final account.
Murray & Roberts, which is helping to build 2010 World Cup stadiums in South Africa, said the withdrawal would not have an material impact on its full year results.