Struggling UK contractor Carillion is reported to be locked in a "£200m row" over cashed owed on a major contract in Qatar linked to the 2022 FIFA World Cup.
Carillion has not been paid for nearly a year for work on a $650m (£493m) contract it won in a joint venture with a local firm on part of the $5.5bn Msheireb Downtown redevelopment of central Doha, City A.M. reports, citing a "well-placed source".
Executives from Carillion, whose shares plunged after announcing an £845m writedown in July, have been travelling to Qatar every month to try and persuade Msheireb Properties to pay up.
Msheireb Properties is a subsidiary of the Qatar Foundation, founded by the gas-rich country’s ruling family.
City A.M. reported that "it is understood Msheireb claims Carillion instead owes it a sizeable amount for failing to fulfil contractual obligations".
Carillion has previously said it will pull out of Middle-East construction contracts.
City A.M. notes that the £200m overdue exceeds Carillion’s £190m market capitalisation, 80% of which has been wiped away since the start of the year.
The debt is believed to fall into the £845m written off by the firm in July, meaning the recovery of any amount from Msheireb would boost the firm’s financial position substantially.
A spokesperson for Carillion told City A.M.: "‘The contractual positions between Carillion and its customers are commercially confidential."
Image: Construction underway at the $5.5bn Msheireb Downtown redevelopment of central Doha (Msheireb Properties)