Malaysian contractor claims firing of its JV midway through scheme is breach of contract by the client

The Malaysian contractor dumped from a prestige racecourse scheme by its Dubai client has said the developer breached its contract.

In a statement to the Kuala Lumpur stock exchange, WCT Engineering said it was axed by Meydan on Christmas Day - receiving the notification four days later. The firm is carrying out the $1.3bn (拢890m) scheme in a joint venture with local firm Arabtec.

The contractor added that it had been given a 14-day cancellation notice, which is due to run out tomorrow. It added that it 鈥渟trongly disputed鈥� the reasons Meydan had given it for axing the JV and said: 鈥淐oncerted efforts have been made by the directors and the JV since receiving the notice to meet with the employer with regards to the cancellation.鈥�

Meydan had previously said it had acted because of 鈥渘on-adherence to the agreed time schedule for construction鈥�.

But WCT said the decision was a breach of contract and warned Meydan it was prepared for a fight. It said: 鈥淭he company, through the JV, is currently considering all its options and will take the necessary steps to protect the group's interests.鈥�

WCT and Arabtec are around 55% of the way through the scheme's construction.

Meydan wants the course opened in time for the Dubai World Cup in 2010, the world's richest horse race, which last year carried a first prize of $6m (拢4m).

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