A $1.3bn contract to build new facilities at Dubai Airport has been scrapped after parties were unable to agree on an acceptable contract.

The Al Habtoor Leighton Group, Murray & Roberts Holdings and Takenaka (HMRT) joint venture, which has withdrawn from the Dubai Airport concourse 3 project, said the decision was disappointing.

The project was expected be complete by April 2011 include two hotels with a total built-up area of 528,000m².

HMRT has been in continuous discussions with the Dubai Department of Civil Aviation (DCA) after it bagged the contract in December 2008 from the department.

Previously the joint venture successfully delivered Terminal 3 and concourse 2 projects.