Qatar Rail terminates $1.4bn Doha Metro station construction contract
Qatar Railways Company (Qatar Rail) has terminated a $1.4bn contract with the consortium constructing two of the main stations for the Doha Metro project and appointed Consolidated Contractors Group to move forward with the project.
The consortium, comprising South Korea’s Samsung C&T, Spanish company Obrascon Huarte Lain (OHL) and Qatar Building Company, had won the contract to build the Msheireb and Education City stations.
Samsung C&T held a 50% stake in the consortium, with OHL and Qatar Building taking 30% and 20% respectively.
In a statement to the London Stock Exchange, OHL said it had received notification from Qatar Rail that its contract had been terminated due to “non-compliance of certain contractual obligations”.
OHL said the termination lacked “any legitimate grounds” and that the consortium had presented Qatar Rail with points of dispute which should have led to negotiation or arbitration rather than termination of the contract.
Qatar Rail says it has acted within the terms of the contract and will take steps to protect its rights in the matter.
A spokesperson for Qatar Rail said the decision was made on solid contractual grounds and that it is working to minimise delays and risks to this part of the Doha Metro project.
