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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World Japanese firms slow construction of Dubai Metro AFP - Friday, January 8 Send IM Story Print TOKYO (AFP) - – A consortium led by Japan's Mitsubishi Heavy Industries has put the brakes on construction work on the Dubai Metro due to a disagreement over payments, one of the firms said Thursday. "We are slowing the pace of the construction for the purpose of negotiating the terms of contracts," said Toshitaka Kawahara, a spokesman for Obayashi Corp., which is one of the constructors. The consortium also comprises Mitsubishi Corp., Kajima Corp., and Turkey's Yapi Merkezi. A source close to one of the companies said that the construction work appeared to have been temporarily halted. "It seems that the work has stopped on site," said the source, who declined to be named. A spokesman for Mitsubishi Heavy Industries said the work had "slowed down." Dubai's Road and Transport Authority however denied Thursday that there has been a slowdown in construction or any delay in payments. "Construction in the project is ongoing as per the timetable. Work is progressing normally in various sites of the project," the Authority said in a statement issued in Dubai. It also reiterated its commitment to "contractual payment obligations in accordance with progress in construction." It said that one of the metro stations near Khalifa Tower, the tallest structure on earth, was opened only four days ago. Dubai said in September that the cost of building the metro had nearly doubled to 7.6 billion dollars, adding to the financial troubles of the Gulf emirate, which is battling a serious debt crisis. The Japanese Nikkei business daily reported earlier Thursday that the consortium would suspend construction on the metro as early as Thursday due to a delay in payment from the Dubai government. The consortium members decided to halt the work for the time being to secure back payments from the Dubai government, it said. The global financial crisis has hit the construction sector in Dubai, delaying many projects due to the credit crunch. The emirate narrowly escaped financial catastrophe last month as neighbouring deep-pocketed Abu Dhabi threw it a last-minute lifeline worth 10 billion dollars to pay imminent debt owed by Dubai World. Dubai inaugurated its metro network in September in a bid to cut dependency on cars and ease congestion, becoming the first city in the oil-rich Gulf to introduce rail as a commuting option. Recommend Send IM Story Print Related Articles AB InBev to cut 10 percent of Belgian jobs AP - 1 hour 53 minutes ago CVS and Allscripts team up on e-prescribing tool AP - 1 hour 57 minutes ago American boosts investment offer for JAL to $1.4B AP - 1 hour 59 minutes ago Department stores see stronger December sales AP - 1 hour 59 minutes ago CORRECTED - "American Idol" returns, but how long can it last? Reuters - 2 hours 8 minutes ago News Search Top Stories Euro economic recovery labours in low gear New US jobless claims edge up Yen drops on Japanese finance minister comments New for 2010: anti-wrinkle bras, protein undies Eurozone retail sales hit pre-Christmas reverse More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended 'Plate weighing scales' to help tackle child obesity Johnson and Johnson heiress found dead in LA 'Avatar' smashes China opening-day record Iceland caught in storm after Icesave veto Last-minute deal to save Saab unlikely: GM chief More Most Viewed » British priest defends urging people to shoplift More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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