Business | Property
Schon seeks 'help' for Dubai Lagoons
Developer in talks with two major contractors to speed up progress of Dh3b project
- By Suzanne Fenton, Staff Reporter
- Published: 00:05 July 29, 2008
- Image Credit: Karl Jeffs/Gulf News
- The site of Dubai Lagoons. The project got delayed last year when the RTA froze development activity so they could plan a major highway through Dubai Investment Park, directly next to the Lagoons.
Dubai: Developer, Schon Properties is in talks to appoint two more major contractors to speed up progress on their Dh3 billion project, Dubai Lagoons located in Dubai Investment Park (DIP).
Phase one of the project, launched in 2005, was meant to be complete by December this year. However, Nasser Hussain, co-chairman of Schon Properties, said "as the construction progress is slow by the present Thai contractor", they are looking to other contractors for help.
Speaking to Gulf News on Sunday, Hussain said that they were in talks with a leading contractor already.
Hussain said the delay in Dubai Lagoons began last year when the Roads and Transport Authority (RTA) froze development activity so they could plan a major highway through DIP, directly next to the Lagoons.
There have also been discussions between contractor, Powerline Gulf and Schon Properties over the amount paid to the contractor. Schon Properties have already paid over Dh107 million to Powerline Gulf, but due to the rising construction costs that sprang up over the long delay, Hussain said they are now having to pay a total of just over Dh613 million for phases one and two.
Hussain said construction costs alone for the entire project could cost up to Dh2.2 billion.
This news comes after concerned investors held a meeting on Sunday to discuss ways to stop their payments or receive refunds back on their investments in the Lagoons project.
One investor said, "We see a lot of delays in the market but they [projects] all get done, they all have a plan to finish. Here, there is no plan."
Investors are annoyed that they have not been offered full refunds or compensation while they have waited three years already since the launch. On July 14, Hussain wrote an e-mail to Dubai Land Department, saying, "We, as the developer of Dubai Lagoon, are ready to refund full monies to every customer who bought in Dubai Lagoon and are not satisfied."
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