Palm Jumeirah contractor cools off on Dubai
Despite full payment for work undertaken, Stellar looks elsewhere
By Gerhard Hope
A US company involved with the district cooling network for Palm Jumeirah, as well as Jumeirah Lake Towers, has stated that it has “become more discerning on the commercial terms of Dubai contracts.”
The Jacksonville Business Journal reported that Stellar of the US, an engineering, construction and mechanical services company, which has about ten district cooling plants in Dubai valued at US$200 million, has “even held off on a contract as it picked up on the indications of the financial crisis that hit the Middle Eastern emirate.”
Stellar has stated it has received US$150 million in payment for its work at Palm District Cooling, a subsidiary of Dubai World.
However, Stellar vice-president: international Kennon Holmes said that, although he “expects Dubai’s recovery to be a long slog,” the company is already seeing looking for other opportunities. The scope of projects in Dubai has been scaled back, but Abu Dhabi is showing “strong growth.”
Stellar began operating in the MENA region in 2003 by providing engineering, procurement and project supervision services managed from its US headquarters in Jacksonville, Florida. In 2004, Stellar established itself formally in the UAE as the Stellar Group LLC, with offices in Dubai and Saudi Arabia.