Saudi Arabia: Italian company says Neom terminated its contract for high-speed rail connection
Saudi Arabia’s giga-project developer NEOM has terminated a contract awarded to
Italian construction group Webuild for work on a
planned high-speed rail connector, with the decision set to take effect on May
27.
According to statements released by Webuild, the
contract related to infrastructure works supporting NEOM’s broader transport
and mobility network, a key component of Saudi Arabia’s Vision 2030 development
strategy.
The company said the termination was initiated
by NEOM, adding that discussions remain
ongoing regarding the project and potential future opportunities within the
mega-development.
Webuild noted that the project was approximately
20 percent complete at the time of termination, with a remaining backlog valued
at around $1.16 billion.
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Arabia cancels Italian company’s project amid wider restructuring
The high-speed connector line was intended to
facilitate rapid mobility between key districts and destinations across NEOM’s
evolving masterplan. However, the project has undergone adjustments as
development priorities continue to shift within the large-scale initiative.
Industry observers say the move reflects the
complexities of delivering giga-projects, where scope changes, restructuring,
and contract reassessments are common as plans evolve.
Despite
the contract cancellation, construction activity across NEOM continues at a
significant pace, with major investments still being directed toward
infrastructure, transport, hospitality, and urban development projects
throughout the region.
Source:
Construction Week
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