Dh1 Billion Slated for Jumeirah Lake Towers Infrastructure
Categories: Real Estate
The Dubai Multi Commodities Centre (DMCC) said its expenditure on infrastructure development at the Jumeirah Lake Towers (JLT) will amount to Dh1 billion. Infrastructure development at the project is progressing and work on the remaining three lakes is expected to be complete by 2010.
DMCC reports that it has signed a Dh150 million landscaping agreement with Al Bayader Irrigation and Contracting Company for the Jumeirah Lake Towers development.
Bryan Wilson, one of the Executive Directors at DMCC, said the two-year contract will involve development of landscaping for the project and work will start within weeks.
"The amount being spent on the infrastructure development within the JLT will come up to Dh1bn. Including all the towers, the project will be a Dh20bn development," said Wilson.
JLT covers about 1.35 million square metres, including the land areas and lakes and is 2.85 km long and 0.55 km in width.
DMCC has already completed work on internal roads stretching to 20km.
"We have also got the western parallel road being constructed by the RTA. When finished, the transportation requirement within the development will be fully met," he said.
"All the roads DMCC is building are complete and all services like the sewerage, water and drainage are in place. We are currently working on the lakes. We filled the first of the four lakes in December 2008," said Wilson.
"About 40 per cent work on the other three lakes is complete. Our programme is to complete the other three lakes by the end of the year. Logistically, it is a bit challenging because we need the towers to be up so we can finish the lake wall that goes around the towers. That is the balancing act we have to do. All the towers are completed around the Lake C," said Wilson.
"That's going to create some challenges to contractors as their access is going to be limited. Right now they are using the area of the lake to store materials and put up their temporary site office," he said. The four lakes have been named Almas East and Almas West, Elucio and Allure.
According to Wilson, the development will be fully ready by 2011.
While 23 of the 87 towers are already occupied, 50 towers will be completed by end-2009, and 70 towers by 2010. The remaining 17 towers will be ready by 2011. Wilson said work on all but two towers at the JLT have commenced.
"Originally when the project was planned in 2003, the whole of JLT was scheduled for completion by end-2008 and early-2009.
"But as we all know there were a series of issues concerning shortage of labour and materials. The deadline has been further extended by two years and we are expecting everything to be in place by 2011," said Wilson.
He added that no development within the project has been affected because of the slowdown of economy.
"We have been monitoring the site to see if there has been any changes. I have had my guys go out and inspect the private towers to see if they have been abandoned or stopped. Everything seems to be okay. They are all committed to finishing their projects," he added.
According to him a study is being conducted to assess the reducing cost of construction. "We are investigating the fall in prices. We are in the process of renegotiating all our contracts.
"Two years ago, Dubai was a very competitive market. It was very difficult to find contractors and prices of construction materials were going up drastically.
"Contractors were looking for some help from us and we agreed to give in and bear the burden of escalating cost. We also renegotiated the prices and they received about 25 per cent to 30 per cent increase," said Wilson.
Wilson said the situation has totally changed and Dubai has once again become a developer's market.
"Prices are falling and now it is our turn to ask for a cut in prices," he added.
DMCC reports that it has signed a Dh150 million landscaping agreement with Al Bayader Irrigation and Contracting Company for the Jumeirah Lake Towers development.
Bryan Wilson, one of the Executive Directors at DMCC, said the two-year contract will involve development of landscaping for the project and work will start within weeks.
"The amount being spent on the infrastructure development within the JLT will come up to Dh1bn. Including all the towers, the project will be a Dh20bn development," said Wilson.
JLT covers about 1.35 million square metres, including the land areas and lakes and is 2.85 km long and 0.55 km in width.
DMCC has already completed work on internal roads stretching to 20km.
"We have also got the western parallel road being constructed by the RTA. When finished, the transportation requirement within the development will be fully met," he said.
"All the roads DMCC is building are complete and all services like the sewerage, water and drainage are in place. We are currently working on the lakes. We filled the first of the four lakes in December 2008," said Wilson.
"About 40 per cent work on the other three lakes is complete. Our programme is to complete the other three lakes by the end of the year. Logistically, it is a bit challenging because we need the towers to be up so we can finish the lake wall that goes around the towers. That is the balancing act we have to do. All the towers are completed around the Lake C," said Wilson.
"That's going to create some challenges to contractors as their access is going to be limited. Right now they are using the area of the lake to store materials and put up their temporary site office," he said. The four lakes have been named Almas East and Almas West, Elucio and Allure.
According to Wilson, the development will be fully ready by 2011.
While 23 of the 87 towers are already occupied, 50 towers will be completed by end-2009, and 70 towers by 2010. The remaining 17 towers will be ready by 2011. Wilson said work on all but two towers at the JLT have commenced.
"Originally when the project was planned in 2003, the whole of JLT was scheduled for completion by end-2008 and early-2009.
"But as we all know there were a series of issues concerning shortage of labour and materials. The deadline has been further extended by two years and we are expecting everything to be in place by 2011," said Wilson.
He added that no development within the project has been affected because of the slowdown of economy.
"We have been monitoring the site to see if there has been any changes. I have had my guys go out and inspect the private towers to see if they have been abandoned or stopped. Everything seems to be okay. They are all committed to finishing their projects," he added.
According to him a study is being conducted to assess the reducing cost of construction. "We are investigating the fall in prices. We are in the process of renegotiating all our contracts.
"Two years ago, Dubai was a very competitive market. It was very difficult to find contractors and prices of construction materials were going up drastically.
"Contractors were looking for some help from us and we agreed to give in and bear the burden of escalating cost. We also renegotiated the prices and they received about 25 per cent to 30 per cent increase," said Wilson.
Wilson said the situation has totally changed and Dubai has once again become a developer's market.
"Prices are falling and now it is our turn to ask for a cut in prices," he added.
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Re: Dh1 Billion Slated for Jumeirah Lake Towers Infrastructure
There's a point here that a lot of people miss these days. Sure, life sucks for developers who were relying on creative financing or off-plan sales to people who were planning to flip the property within months. But if you have your financing straight, things are better in a lot of ways. Price of cement and steel isn't going up every other day, and you actually have suppliers fighting for the privilege of selling you stuff instead of having to fight with other buyers for the privilege of buying. Gotta be a lot easier and cheaper to source materials and labor than it was 6 months ago...
Posted by rakwatcher on March 3, 2009 at 3:00 AM
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