State-owned NEOM has officially cancelled plans to build the Moonlight seawater reverse osmosis desalination plant. The plant, due to have a capacity of 150,000 cubic meters per day (cm/d) had been tendered in 2024. In October that year, Enowa, the Neom utility subsidiary, had received four bids from companies for a contract to build the plant.

These included companies such as local-based Alfanar Company and Spain’s Abengoa. It also entailed China Machinery Engineering Corporation, Orascom from Egypt, local-based Wetico and India-headquartered VA Tech Wabag.

However, in 2025, the project failed to reach the contract award stage. It has since been cancelled as part of a “complete restructure for Neom”, a source told MEED. NEOM did not respond to a request for comment. However, it is understood that the desalination project will not be retendered under a new scope. Arab nations such as Morocco are also advancing desalination projects as Africa’s largest desalination plant. 

Scope of Implementation on the Moonlight Desalination Plant by NEOM

The Moonlight desalination plant by NEOM was due to be built adjacent to the 125,000 cm/d desalination plant at Duba. It is located on Saudi Arabia’s Red Sea Coast and was also expected to take 12 months to complete. Previously, in May 2024, Enowa confirmed the cancellation of another project to develop a renewable-energy-powered advanced SWRO project. Based in NEOM’s Oxagon, the project was expected to have zero liquid discharge.

The scope of the cancelled project’s first phase included a desalination plant with a production capacity of 500,000 cm/d of desalinated water. Furthermore, it was to be developed by a team of Japan’s Itochu Corporation and France’s Veolia.

In recent months, Saudi Arabia’s construction sector has been pivoting away from prestige-driven. In March, NEOM has cancelled contracts such as The Line tunnels project and the steel structural works on the Trojena desert ski village. The contract was to be carried out by Malaysia-based Eversendai Corporation.

Project Overview

• Project Name: Moonlight Desalination Plant
• Project Type: SWRO desalination plant
• Capacity: 150,000 m³/day
• Purpose: Water supply for NEOM
• Status: Cancelled

Key Stakeholders

• Client: NEOM
• Utility Arm: Enowa
• Bidders Included:
  • Alfanar Company
  • Abengoa
  • China Machinery Engineering Corporation
  • Orascom Construction
  • VA Tech Wabag

Location

• Site: Red Sea Coast (near Duba)
• Country: Saudi Arabia

Scope

• Seawater reverse osmosis (SWRO) plant
• Adjacent to existing desalination facility
• Planned 12-month construction timeline
• Part of wider NEOM water infrastructure

Funding / Delivery Model

• Tender issued in 2024
• Multiple EPC bids received
• No contract award reached
• Project not retendered

Status

• Stage: Cancelled (post-tender)
• Reason: NEOM project restructuring
• Next: No restart under current scope

Key Risks & Challenges

• Strategic project reprioritization
• Failure to reach contract award
• Also broader NEOM restructuring
• Shift away from large-scale projects

Strategic Significance

• Signals reset in NEOM infrastructure plans
• Reflects shift in Saudi project priorities
• Also impacts desalination capacity expansion
• Follows other major NEOM cancellations