Business | Construction
Highway project could face cost overruns
Spiralling prices of building materials will increase the spending on Shahama-Saadiyat road.
- By Himendra Mohan Kumar, Staff Reporter
- Published: 00:15 May 21, 2008
Abu Dhabi: There are likely to be cost overruns in the Dh5.43 billion, under-construction, 10-lane Shah-ama-Saadiyat highway project, proposed to link Shahama-Dubai-Abu Dhabi road to the Abu Dhabi city, a senior executive close to the developments told Gulf News.
"The contractor hasn't submitted any bills new yet. But, I am sure there will be cost overruns, with the increases in the price of building materials - cement and steel, as well as that of diesel," said the executive, who didn't want to be identified. "We cannot say now, how much extra, the cost would be."
The highway project's completion is targeted for May-June 2009, he said. As per original estimates, the building cost of the project is Dh5.43 billion. Abu Dhabi's Tourism Development and Investment Company (TDIC) will bear Dh3.6 billion of the total cost and Aldar Properties Dh1.83 billion.
The cost for TDIC is higher because they will be building a 1.3-kilometre bridge which would connect Saadiyat to Mina Zayed, besides the road inside Saadiyat.
The total length of the Shahama-Saadiyat expressway will be about 27 kilometres. The construction of the highway started in March 2007.
The project is undertaken in conjunction with Aldar Properties, TDIC, as well as the Department of Transport.
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