Cancelled contract.

Cancelled contract causes contention The Malaysian company that lost the contract to build Dubai's new racecourse, said yesterday that the cancellation was a breach of contract. WCT Berhad, which won the $1.3 billion contract in a 50:50 joint venture with Arabtec Holding in 2007, added in a statement to the Kuala Lumpur Stock Exchange that it was "considering all its options and will take the necessary steps to protect [its] interests". The firm plunged the most in almost 14 years, losing 30 per cent before trading was halted. Arabtec "expressed its regret" at the decision, without further comment. According to analyst Jon Oh of JP Morgan Chase in Kuala Lumpur, almost 60 per cent of the contract is complete and the partners have been paid for 28 per cent of the value of the work. They have not been reimbursed for further work valued at $143 million, Oh said. Meydan said that the contract with Arabtec and WCT had been cancelled because "the latter failed to abide by the time schedule for the completion", which, WCT countered, is "strongly disputed". Meydan added that phases of the completion of the main stand and the infrastructure works had "shown considerable delay in implementation". The contract was due to be completed by October 7 this year, and the venture was to be paid as work was carried out. The horseracing track, built for the sport's richest event, the 2010 Dubai World Cup, was designed to be the new home of the Dubai Racing Club. Meydan said that other firms were contracted to construct the grandstand and the infrastructure works to ensure the Nad Al Sheba project kept to its targeted schedule, and that "dozens" were working on it.

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