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M&R JV withdraws from Dubai contract

South African engineering and construction company Murray & Roberts Holdings said on Thursday 16 April 2009 that Al Habtoor Murray & Roberts Takenaka Joint Venture has reached mutual agreement with Dubai Civil Aviation to withdraw from its contract to construct Dubai International Airport Concourse 3.

HMRT was awarded the contract in December 2008 and has been working with DCA to finalise acceptable contract terms since then. However, the parties have concluded that a mutually acceptable contract is not currently possible, Murray & Roberts said in a statement.

The group's 40% share of this contract was worth about R5 billion in revenues over the next three year period. Limited work has been undertaken on the project to date and the Parties will work together to reach a final account, it said.

HMRT successfully delivered the Concourse 2 and Terminal 3 project which was opened last year.

While withdrawal from this project is not expected to have a material impact on the group's results for the financial year to June 2009, the directors will meet at the end of June to consider and approve the third quarter financial results and review market conditions and budget assessments for the year to June 2009 and should it prove necessary, will issue a business update thereafter, it said.

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