Barwa terminates contract with Panceltica
Sailya project work to resume shortly; subcontractors to finish job
Qatar’s second-largest property developer, Barwa Real Estate, has terminated its contract with Panceltica Holdings, the main contractor for its Barwa Housing Programme in Sailya.
The Sailya project was scheduled for completion in July but work was halted for several months due to “financial difficulties facing the main contractor”, according to a company statement released yesterday.
The statement said work should resume next week with new agreements to be signed directly with the project’s sub-contractors who will finish the job.
The project part of Barwa’s programme to provide affordable housing to low and middle income earners and constitutes nearly 1000 housing units. Currently 95% of construction has been completed and delivery of the project is now expected by the end of the year.
Last month the Gulf Times reported that the Panceltica Holdings unit, Panceltica Qatar, owed some 50 subcontractors and suppliers close to US $33 million (QAR 120 million) for work executed as far back as November.
Barwa vice chairman Hitmi Bin Ali Al Hitmi said yesterday that Barwa would immediately pay all financial receivables from the main contractor to the subcontractors from the project’s construction budget.
According to media reports, Barwa took a 20% stake in Panceltica in January and is considering a takeover of the firm. Some Panceltica Qatar officials are reported to have fled Qatar in March.