Dubai: Tourism Development and Investment Company (TDIC) has cancelled a tender related to construction work at the Frank Gehry-designed Guggenheim Abu Dhabi.
In a statement to Gulf News this morning, TDIC confirmed that the tender was for concrete works, and that the contract would be retendered at a future date.
"All renewed interest from contractors will be welcome," the statement said.
TDIC did not immediately respond to comment on whether the withdrawal of the tender was due to market conditions, or whether the decision could delay the mega-project, which is due for completion in 2012.
But analysts speculated yesterday that market conditions were undoubtedly a factor in the decision.
"Cash flow and market pressures have impacted development work and continue to affect certain projects' viability. Engaging in further loss making activities becomes a tough choice especially when market trough is not apparent," said Saud Masud, senior analyst, real estate and construction at Rasmala Investment Bank.
In the statement, TDIC said that the cancellation was "due to a review of its project procurement strategy."
