Webuild, the contractor behind €1.4 billion high-speed railway in NEOM announced that the client NEOM has exercised its right to terminate the contract relating to the Connector High-Speed Line project for the construction, in the locality of Sharma (Tabuk), Saudi Arabia, of a high-speed railway line along the northern coast of the Red Sea.
Earlier, during May 2023, JV of Webuild, Shibh Al Jazira awarded NEOM’s Connector High-Speed Line project. (read more)
The termination will take effect from May 27, 2026. As of that date, the progress of works stands at approximately 20%, with a residual backlog for Webuild of around €1 billion. For this project, which had already been suspended, no revenues were expected for the current year.
All costs incurred up to the effective date of termination, as well as those related to the early termination of the contract, including site disengagement and demobilization activities, will be reimbursed by the client, holding the Group harmless from the effects of the termination, in accordance with the contract and applicable law.
With this termination, all of Webuild’s activities for NEOM have been concluded. Webuild’s construction backlog, net of the remaining activities related to the Connector High-Speed Line project, remains above €50 billion, statement mentioned.
