A consortium of Samsung C&T and Hyundai Engineering & Construction won and began work on a Neom City tunnel project in Saudi Arabia, but the contract was terminated due to the client's circumstances.
On the 13th, Hyundai Engineering & Construction disclosed that the tunnel project contract awarded by Saudi Neom Company in June 2022 was terminated. Hyundai Engineering & Construction said it received an official termination letter from Neom Company the previous day, noting that the reason for termination was a "request to terminate the contract due to the client's business restructuring."
The project is to build a 12.5-kilometer section of an underground tunnel in Neom City, Tabuk Province, Saudi Arabia. Samsung C&T, Hyundai Engineering & Construction and Greece's Archirodon formed a consortium to win the order.
Saudi Arabia's plan was to bore a tunnel beneath the linear city "The Line" to run a highway, a subway and a freight railway. The total contract amount was reported to be about $1 billion (about 1.3 trillion won).
Since the 2022 contract, Hyundai Engineering & Construction's disclosed equity share is about 723.1 billion won. The original construction contract period ran through Dec. 29, 2025.
Hyundai Engineering & Construction said, "Settlement for the inputs has been completed, so no financial loss has occurred to the company so far, but disclosure of details such as the termination amount has been withheld under the contract's confidentiality clause."