NEOM has officially terminated an estimated $1.15 billion structural steel contract to Eversendai Corporation Berhad for Trojena ski village. The contract cancellation is the second by Saudi state-owned NEOM in this month. This comes after it cancelled a tunneling contract of the same amount at the heart of its flagship development The Line. Trojena has been due to stage the Asian Winter Games in 2029.

However, Saudi Arabia withdrew from hosting the event, forcing organizers to consider other locations. Eversendai is a Malaysian-based structural steel specialist listed in Kuala Lampur. They noted in a stock exchange statement that the contract termination would take effect on March 2026. The contract had been awarded in March 2024 and was being executed in collaboration with Saudi Arabia’s Al Bawani Company.

Though the exact value was not given, the steel work was part of a larger, “collectively worth RM5.4 billion” (approximately USD 1.14 billion) set of contracts awarded to Eversendai. It also included projects in the UAE and India.

Reasons for NEOM Structural Steel Contract Termination

Though NEOM has not provided an explicit reason for terminating the structural steel contract, Eversendai provided one. “We believe this has happened due to the current geopolitical situation in the Middle East,” its statement said.

The firm had fully delivered the project as per the contractual obligations with no compromise to safety and quality until the date of the notice. The contractor is now preparing documents to show project progress including commercial claims for termination and demobilization costs.

Moreover, it says these demands should be met by NEOM. “Operations in the Middle East remain stable despite the current geopolitical situation,” the company said, without giving further details of its project pipeline. In its 2024 annual report, Eversendai called Trojena its “largest and most challenging project.”

The contract included engineering, connection design, material procurement, fabrication, and installation of structural steel for the mountain resort. It also entailed a 127,000-ton requirement. Emirates Steel Arkan was previously contracted to supply beams for the project.

Project Overview

• Project Type: Mountain resort structural steel works.
• Estimated Cost: $1.15 billion.
• Purpose: Supply structural steel to the Trojena ski village project.

Key Developer

• Developer: NEOM

Key Contractor

• Contractor: Eversendai Corporation Berhad.
• Partner: Al Bawani Company

Location

• Project: Trojena
• Country: Saudi Arabia

Scope

• Structural steel engineering, fabrication, and installation.
• About 127,000 tons of steel required.

Status

• Stage: Contract terminated.
• Termination: March 2026.
• Awarded: March 2024.

Reason for Termination

• Associated with the geopolitical situation in the Middle East.

Strategic Significance

• Part of flagship NEOM tourism project.
• Earlier associated with the Asian Winter Games 2029.