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Neom has terminated its contract with Italian contractor Webuild for the construction of three dams feeding a freshwater lake, as well as ‘The Bow’ architectural structure at Trojena in northwest Saudi Arabia.

In a statement posted on its website, Webuild said: “The termination will become effective on 29 March. As of that date, the works are approximately 30% complete, with a remaining project backlog for Webuild of approximately €2.8bn ($3.2bn).”

Neom awarded Webuild a SR20bn ($5bn) contract to build the dams in late 2023, which MEED exclusively reported at the time.

The termination is the latest in a series of high-profile contract cancellations by Neom in recent weeks. Earlier this week, Neom terminated its contract with Malaysian contractor Eversendai Corporation for the steel structural works on the Ski Village project in Trojena.

In a statement published on its website, Eversendai said it had received an official notice that the termination would take effect from 26 March.

In January this year, Saudi Arabia confirmed the postponement of the 2029 Asian Winter Games, which were scheduled to be held at Trojena. Trojena was chosen to host the event in October 2022.

Neom has also cancelled contracts for the construction of the tunnel sections of The Line in northwest Saudi Arabia.

In a stock exchange filing dated 13 March, South Korean contractor Hyundai E&C said Neom cancelled its contract on 29 December last year.

Hyundai E&C was executing the drill-and-blast section of The Line’s tunnels in a joint venture with Greece’s Archirodon and South Korean counterpart Samsung C&T.

These developments follow a wider strategic review of Neom last year, as Saudi Arabia reassesses priorities under its Vision 2030 programme.

With tighter liquidity at the sovereign wealth fund level, resources are being redirected towards projects linked to the Fifa World Cup 2034, Expo 2030, and essential housing, healthcare and education initiatives.