Abu Dhabi: Three major projects on Abu Dhabi's Saadiyat Island Cultural District will be delayed.
The Tourism Development and Investment Company (TDIC) revealed in a statement yesterday that Zayed National Museum, Louvre Abu Dhabi and Guggenheim Abu Dhabi would not meet their initial 2013-2014 deadlines.
TDIC would not comment on the new deadline for the flagship projects when contacted by Gulf News.
"TDIC's initial plan was to open all these museums between 2013-2014; however, due to the immense magnitude of the work associated with the development of such consequential projects, the company has decided to extend the delivery dates," the statement said.
"This will ensure that quality is not compromised, and allow each establishment the time needed to create its own identity on the local and international cultural stage."
The statement said TDIC can confirm that the review will "only have a moderate impact on the delivery timeline of the museums".
Long extension
An anonymous source close to the project told AP that the delay would be "at least a year, possibly longer", but would not exceed five years from the original planned opening.
The news comes just days after the designer of the Guggenheim, Frank Gehry, told Bloomberg that work on the 450,000-square-foot Guggenheim had completely halted as the emirate scales back on plans amid the economic slowdown.
"The Abu Dhabi building we've been working on in the last five to six years has been stopped, and that's painful," Gehry said in an interview in Los Angeles on Thursday.
It also comes days after TDIC cancelled a major tender for construction work at the site, but refuted claims by analysts that the move was related to the global downturn.
"The project is proceeding, and TDIC continuously monitors the delivery of its projects to ensure they remain on schedule, within budget and that TDIC's high standards are upheld throughout the process. TDIC is moving forward as planned with all of its announced projects including all the museums in Saadiyat Cultural District," TDIC said in a statement to Gulf News.
Slowdown
Analysts speculated last week that the slowing down of the projects was due to ongoing uncertainty about the Abu Dhabi property market, with a report by Jones Lang LaSalle revealing earlier this month that rents have fallen 40 per cent since the market's peak in the emirate.
TDIC has cut its 2011 budget by 28 per cent to Dh13.4 billion as it postponed some projects. It reported losses of Dh1.2 billion last year and Dh551 million in 2009. The company delayed a $3 billion bond sale plan in July, Bloomberg reported.
Gulf News reported last week that UAE developers are set to experience a lacklustre quarter and Abu Dhabi in particular is set to suffer from cut-throat price competition and a scale down in government plans, according to a new report by Arqaam Capital.
"The slowdown in Dubai's construction industry has redirected the majority of UAE-based contractors towards Abu Dhabi for growth," said Mohammad Kamal, research director at Arqaam Capital.
"To replenish order books on the back of the government's 30-year development plan. The ensuing price competition has been detrimental to margins across the board.
"Many projects have been scaled down or suspended and development budgets have been extended over longer timelines. The end result has been an overcrowded space with diminishing prospects," said Kamal.
— With inputs from agencies