[Alpha Biz= Kim Jisun] A tunnel construction project in Saudi Arabia’s NEOM City, awarded to a consortium led by Samsung C&T and Hyundai Engineering & Construction, has been terminated due to the client’s business restructuring.

Hyundai E&C announced in a filing on March 13 that the NEOM Company canceled the tunnel project contract originally awarded in June 2022. The company said it received an official termination notice from the Saudi developer the previous day.

According to Hyundai E&C, the main reason for the cancellation was “a request for contract termination due to the client’s project restructuring.”

The project involved constructing a 12.5-kilometer underground tunnel section in NEOM City in Tabuk Province, Saudi Arabia. The contract had been secured by a consortium consisting of Samsung C&T, Hyundai E&C, and Greek construction firm Archirodon.

The tunnel was designed to run beneath “The Line,” NEOM’s planned linear city, and was intended to accommodate highways, subways, and freight rail lines as part of Saudi Arabia’s futuristic urban development plan.

The total contract value was about $1 billion (approximately 1.3 trillion won). Hyundai E&C’s share of the project, according to its earlier disclosure, was about 723.1 billion won. The original contract period was set to run until December 29, 2025.

 

 

 

[ⓒ 알파경제. 무단전재-재배포 금지]