Sunday, Jul 31, 2011
(This item was originally published Saturday.)
RIYADH (Zawya Dow Jones)--Saudi Arabia-based Emaar The Economic City (4220.SA), or EEC, said Saturday it has terminated a 325 million Saudi riyal ($86.7 million) contract signed in 2008 with Al-Radwan Contracting Co. for the construction of 134 villas in King Abdullah Economic City.
Al-Radwan has completed the construction of certain structural frames and foundations of the project and EEC has paid an amount of SAR56.8 million against the contract, the affiliate of Dubai-based developer Emaar Properties PJSC (EMAAR.DFM), said in a statement posted on the Saudi bourse website.
The real-estate company, which is tasked with developing the $27 billion King Abdullah Economic City on Saudi Arabia's Red Sea coast, has previously canceled a number of contracts for the city including a SAR1.4 billion contract with contractor Saudi Binladin Group.
The company did not immediately respond to calls requesting comment.
EEC shares closed trading 1.4% lower Saturday at SAR7.20.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
Copyright (c) 2011 Dow Jones & Company, Inc.
(END) Dow Jones Newswires
31-07-11 0347GMT
