Saudi Arabia’s NEOM has reportedly ended its contract for the Connector High-Speed Line project in Tabuk, according to contractor Webuild.
The termination is set to come into effect on May 27, with construction work said to be roughly 20 per cent finished before the decision was made.
Webuild revealed that the remaining value tied to the cancelled project was estimated at around EUR1B.
The company added that the decision effectively concludes all of its active projects connected to NEOM.
Under the agreement, NEOM is expected to reimburse Webuild for expenses incurred up to the cancellation date, including costs linked to site shutdown and demobilisation activities.
Despite the project setback, Webuild stated that its wider construction order backlog still exceeds EUR50B.
The cancellation follows another major decision earlier this year, when NEOM reportedly withdrew Webuild’s contract for a three-dam development project valued at EUR2.8B.
NEOM continues to remain a central pillar of Saudi Arabia’s Vision 2030 plans aimed at reshaping the kingdom’s economy and infrastructure landscape.
