The state-owned operator of Abu Dhabi International Airport (AUH) has reportedly cancelled a $2.94bn (AED10.8bn) contract that involved building the main terminal at the airport.

AUH-operator Abu Dhabi Airports junked a previously agreed deal with a consortium after the project costs exceeded the budget, Reuters reported quoting sources familiar with the matter.

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In 2012, a consortium comprising local company Arabtec, Turkey’s TAV Insaat and Greek firm Consolidated Contractors Company (CCC) secured the contract to build the Midfield Terminal Building at AUH.

Initially, the terminal was scheduled to open in 2017 but since then suffered several delays. Another source told the news agency that Abu Dhabi Airports has contracted local firm Trojan to complete the remaining construction works.

However, Abu Dhabi Airports did not confirm the development.

The new 700,000m² Midfield Terminal Building was conceived to support the growth of the national carrier Etihad Airways.

To be situated between the AUH’s two runways, the terminal will feature passenger and cargo facilities, duty-free shops, restaurants and a transit hotel.

According to Abu Dhabi Airports website, the terminal will also help in increasing the airport’s overall capacity to 45 million passengers a year.

AUH is the second largest airport in the United Arab Emirates (UAE). More than 30 airlines offer services with flights to more than 100 destinations in more than 50 countries from the airport.

Abu Dhabi Airports is operating AUH since 2006.

Earlier this year, the operator completed the development of a solar-powered car park at the airport.