TOKYO - A consortium led by Japan's Mitsubishi Heavy Industries has put the brakes on construction work on the Dubai Metro due to a disagreement over payments, one of the firms said on Thursday.

"We are slowing the pace of the construction for the purpose of negotiating the terms of contracts," said Toshitaka Kawahara, a spokesman for Obayashi Corp., which is one of the constructors.

The consortium also comprises Mitsubishi Corp., Kajima Corp., and Turkey's Yapi Merkezi.

Dubai said in September that the cost of building the metro had nearly doubled to $7.6 billion, adding to the financial troubles of the Gulf emirate, which is battling a serious debt crisis.

The Japanese Nikkei business daily reported earlier Thursday that theconsortium would suspend construction on the metro as early as Thursday due to a delay in payment from the Dubai government.

The consortium members decided to halt the work for the time being to secure back payments from the Dubai government, it said.

The global financial crisis has hit the construction sector in Dubai, delaying many projects due to the credit crunch.

The emirate narrowly escaped financial catastrophe last month as neighbouring deep-pocketed Abu Dhabi threw it a last-minute lifeline worth $10 billion to pay imminent debt owed by Dubai World.

Dubai inaugurated its metro network in September in a bid to cut dependency on cars and ease congestion, becoming the first city in the oil-rich Gulf to introduce rail as a commuting option.

Source: AFP