Saudi Arabia has cancelled a $317 million mega seawater desalination plant, VA Tech Wabag said in a regulatory filing on the Bombay Stock Exchange (BSE).

“The customer has notified all tender participants on 16 December 2024, that the said tender stands cancelled pursuant to their internal administrative procedures,” the company said.

The company was awarded the contract for the 300 million liters per day (MLD) seawater reverse osmosis desalination plant in September from the state-run Saline Water Conversion Corporation (SWCC).

VA Tech Wabag said it is engaging with the customer to understand the reasons behind the decision.

The EPCC contract included the scope of design, engineering, supply, construction and commissioning of the 300 MLD plant, which will be developed on a greenfield site located on the west coast of Saudi Arabia, south of the Red Sea-facing Yanbu Al-Bahr, the company’s statement in September said.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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