Saudi Arabia: Malaysian firm confirms cancellation of Neom contract
Malaysia’s Eversendai Corporation
Bhd has confirmed the termination of its structural steel contract for Trojena Ski Village, part
of Saudi Arabia’s ambitious Neom megacity, citing escalating geopolitical
tensions in the Middle East. The termination takes effect on March 26.
In a stock exchange filing in Kuala Lumpur,
Eversendai stated it had “fully committed and delivered the project as per
contractual obligations with no compromise to safety and quality.” The company
is preparing documentation to substantiate the work completed and plans to
submit commercial claims for compensation for termination and demobilization
costs.
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Trojena was envisioned as a luxury desert ski resort featuring slopes atop
hotel roofs and a crystal skyscraper designed to rival the Eiffel Tower.
Originally estimated at $19 billion and scheduled for completion in 2026, the
resort was also set to host the 2029 Asian Winter Games. Construction
challenges and regional instability have delayed these plans.
The project involved a collaboration with Saudi-based
Al Bawani Co., with Eversendai
responsible for material procurement, fabrication, and structural steel
installation. Despite the termination, the company maintains that its
operations in the Middle East remain stable and it is nearing completion of
other projects.
Eversendai currently has an order book valued
at 2.02 billion ringgit ($510 million), excluding remaining work for Trojena.
The company expressed confidence that its fully substantiated claims will be
fairly compensated by the client.
Source:
Bloomberg
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