The NEOM Trojena dams contract has been terminated, significantly disrupting Saudi Arabia’s flagship giga-project. Consequently, the $5 billion deal with Italian contractor WeBuild ends a high-profile collaboration. Furthermore, NEOM’s leadership cited strategic reprioritization under Vision 2030 as the main reason. Therefore, the termination reflects broader shifts in financing, portfolio focus, and project execution across the giga-city landscape.

At the time of cancellation, roughly 30 per cent of the works were completed, leaving unfinished structures and pending settlements. NEOM officials explained that all completed work will be assessed for future planning. In addition, remaining scopes may be retendered or reallocated internally. Ultimately, the move ensures capital is directed to projects delivering measurable economic, social, and environmental returns.

NEOM Trojena Dams Contract Termination Explained

NEOM formally ended the NEOM Trojena dams contract on 29 March 2026. Originally awarded in late 2023, the contract covered three dams and a central artificial lake for Trojena’s hospitality and sporting facilities.

WeBuild confirmed that about 30 per cent of the works had been executed before termination. Moreover, the remaining backlog is valued at approximately €2.8 billion ($3.2 billion). Consequently, discussions are ongoing regarding compensation, liabilities, and possible retendering of unfinished sections.

Furthermore, NEOM emphasized that the termination aligns with a broader strategic review of projects within the giga-city. As a result, priority now shifts toward infrastructure with direct economic and social impact, including housing, healthcare, education, and event-ready facilities for Expo 2030 and FIFA World Cup 2034.

Implications of the NEOM Trojena Dams Contract Termination

The termination of the NEOM Trojena dams contract signals caution for contractors in Saudi Arabia’s giga-project sector. In particular, firms are reassessing risks associated with milestone delivery, financing, and contractual obligations.

Additionally, the decision highlights the importance of performance certainty and clear returns on investment. It also suggests that NEOM will favor projects with shorter execution timelines and measurable contributions to Vision 2030 goals.

Consequently, regional contractors and investors are reconsidering the impact on supply chains, cash flow models, and contract structures. Moreover, future engagements may involve alternative delivery models like public-private partnerships or integrated project delivery to mitigate exposure.

NEOM Trojena Dams Contract: Future Outlook

NEOM now focuses on critical infrastructure and essential services while balancing ambition with fiscal discipline. Therefore, the termination reinforces the giga-project’s strategy to prioritize high-value, high-impact developments.

Although the termination raises questions about project timelines, NEOM indicated that it remains committed to completing Trojena’s lake and resort facilities, albeit with revised execution plans. Consequently, contractors and investors are watching closely, and lessons from this termination are likely to influence other NEOM segments.

This termination comes as NEOM continues other projects, including the Raffles Trojena Resort

Project Fact Sheet

Project name: NEOM Trojena dams and artificial lake system

Client/Owner: NEOM Company

Original contract value: SR20 billion (~$5 billion)

Contractor (terminated): WeBuild S.p.A (Italy)

Notice of termination: 29 March 2026

Completion status at termination: 30 % completed

Remaining backlog: ~€2.8 billion (~$3.2 billion)

Scope of works:

• Construction of three dams for freshwater storage and lake formation
• Earthworks, reinforced concrete structures, and water control systems
• Supporting hospitality, lifestyle, and sports facilities around the lake

Primary objectives: Create a central water feature and foundational infrastructure for Trojena resort

Reason for termination: Strategic reprioritization and alignment with Vision 2030

Project Team

Owner: NEOM Company

Executive sponsor: Saudi Arabia’s Public Investment Fund (PIF)

Contractor: WeBuild S.p.A (terminated)

Design and engineering partners: International consultancies specializing in dam design, hydrology, and environmental management

Project management: NEOM internal PMO with global advisory support

Major subcontractors: Civil works, earthmoving, heavy equipment, and logistics providers

Financial advisors: Independent capital markets and risk advisory firms supporting valuation and settlements