Nakheel to restart six projects
Nakheel will resume work on at least six projects by early October as it settles outstanding bills with contractors. The developer, which is owned by Dubai World, is restructuring US$10.5 billion (Dh38.56bn) owed to banks, contractors and service providers. Contractors last month started to receive payments from the developer the Palm islands, paving the way for resumption of stalled projects around the emirate.
"Nakheel is currently engaging contractors in the short-term projects with a view to continuation in the coming weeks," the company said. "We expect that all short-term projects will be fully mobilised by early October 2010." In late June, Nakheel said it had reached an agreement with 75 per cent of its trade creditors and pledged to settle Dh4bn of claims by the middle of last month. Ali Rashid Ahmed Lootah, the chairman of Nakheel, said the company was dealing with 1,000 trade creditors. Companies including Arabtec Construction and Halcrow, a UK engineering firm involved in the Palm Jumeirah, have confirmed they received initial payments from Nakheel.
Among the first projects likely to resume are Jumeirah Park, Al Furjan, Jumeirah Village, Jumeirah Islands Mansions, Jumeirah Heights Clusters and Al Badrah. Ziad Makhzoumi, the chief financial officer of Arabtec, which stopped work on Al Furjan in January, said recently the project would restart soon. In March, Nakheel received about Dh33.05bn of fresh funds from the Dubai Government through the Dubai Financial Support Fund to revive stalled projects and settle some debt.
In a letter sent to property investors in Jumeirah Golf Estates in May, Nakheel said some of the money would also be used to finish parts of the development that were close to completion. But the fate of longer-term developments such as Palm Jebel Ali is unclear. Hundreds of investors who bought homes on the reclaimed island are hiring a law firm to represent them as they seek negotiations with Nakheel.
Aarti Chana, a spokeswoman for Palm Jebel Ali Homeowners, said Nakheel had informed investors the project could be delayed for between five and 10 years. firstname.lastname@example.org
Updated: August 17, 2010 04:00 AM