Eversendai Corporation Bhd said it has received a termination notice from NEOM Company for its TROJENA Ski Village structural steel contract in Saudi Arabia, effective March 26, citing geopolitical developments in the Middle East. Eversendai said in a statement that it is preparing documentation to substantiate project progress and will submit commercial claims, including compensation for termination and related demobilisation costs.
The contract, awarded in March 2024 in collaboration with Al Bawani Co, according to Evensendai, had been executed in line with contractual obligations up to the termination date. The project was originally scheduled for completion within 28 and a half months.
The project is one of the four major contracts collectively worth RM5.4 billion two years ago. The other three contracts are Wynn Al Marjan Island Integrated Resort Development in the United Arab Emirates (UAE), as well as Rupa IT Building and Rupa Crystal IT Building in India.
Eversendai’s shares surged from the 20 sen level following the contract wins in March 2024, briefly touching highs of 78.5 sen in May before retreating.
Read the full story at The Edge Malaysia