Depa, Doha International Airport

Depa JV loses $245mn Doha airport fit-out contract

Lindner Depa, a joint venture between Dubai-based Depa Ltd and Germany’s Lindner AG, has had a 900-million dirhams ($245.03 million) contract to fit out the new Doha International Airport terminated, reporter Reuters.

The terminated contract covered the fit out of 17 lounges at the airport and was the largest project in the company’s backlog.

Depa, which said it was discussing options with its lawyers, said the contract was pulled after Lindner Depa’s “refusal to accept new and non-favourable contract terms and conditions … after being denied full access to the project site to perform its contract scope of work.”

Last week Depa said in a statement that its lawyers were in discussions with officials at the airport after the joint venture had its contract performance bond and advance payment guarantee pulled.
It said the two were worth a total of AED177m.

The performance bond and advance payment guarantee were put in place due to Lindner Depa’s refusal to accept new non-favourable contract terms and conditions, including dropping all extension-of-time costs and acceleration costs.

The company blamed the lack of access for being unable to start its interior contracting work as planned and to meet the original completion date.

The New Doha International Airport project represented the largest project in Depa’s backlog, but it is still working on over 200 projects across the Middle East, Africa and South East Asia.

Last month, Akbar Al Baker, CEO of Qatar Airways, said Qatar’s new international airport will officially open on December 12 after costs to build the facility increased by $1bn.

In April, Al Baker said the first phase of the New Doha International Airport (NDIA) is to hire 8,000 employees in the run-up to its opening later this year.

The upgraded facility, which could be one of the region’s major aviation hubs, has already hired 3,000 staff and is in the process of recruiting a further 5,000 in time for the launch, Al Baker said.