Companies building the centerpiece of a prominent Dubai race course said Tuesday the original $1.25 billion contract has been cancelled
, putting the fate of the future site of the Middle East's premier horse race in doubt.
The project's developer, Meydan LLC, blamed a work delay for the decision.
It vowed to inaugurate the project as planned in time for the 2010 Dubai World Cup, which promises to top its own record of horse racing's richest race with a purse of $10 million.
However, questions about the project's timeframe have been voiced since the deal was awarded. The cancellation follows decisions by a number of builders in the boomtown to scale back ongoing megaprojects as financing grows harder to get.
One of two contractors hired by Meydan said in a statement posted on the Kuala Lumpur stock exchange Web site Tuesday that it has been given 14 days' notice of the work stoppage.
The company, Malaysia's WCT Bhd., said it "views the cancellation as a breach of contract on the part of the employer." It said it is weighing its options and "will take the necessary steps" to protect its interests.
Dubai-based Arabtec Construction LLC, which in a 50-50 joint venture with WCT was awarded the construction deal in September 2007, did not immediately respond to requests for comment.
Meydan said in explaining the cancellation there was a "considerable delay of implementation" on the project, which covers a grandstand building designed to hold up to 60,000 spectators and related infrastructure work.
The site was also designed to include a five-star hotel, more than 10 restaurants and a new home for the Dubai Racing Club.
The company said other firms have been contracted to finish the project. It did not reply to a request asking for specific terms of the new deal.
The Dubai World Cup ranks among the Arab Gulf region's biggest social and sporting events. Thoroughbreds owned by Dubai ruler Sheik Mohammed bin Rashid Al Maktoum, a well-known racing enthusiast, often compete.
The 2009 race is scheduled to take place March 28.
(The Associated Press)