Red Sea says phase 2 of staff camp project not to be activated

Logo of Red Sea International Co.

Red Sea International Co. received a letter from Webuild SpA, the contractor for the project to build a staff camp serving the Trojena Dam project at NEOM, related to the latter’s decision to not activate the project’s second phase as the initial phase should suffice.

As a result, the company may be entitled to an additional amount upon completion of the contract works, which entailed meeting certain conditions, the company said in a statement to Tadawul today, March 6.

Any subsequent developments in this regard will be duly announced, it added.

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Red Sea also indicated that there are no related costs to incurred during the current period, noting that a financial impact, if any, will be announced at a later stage.

According to Argaam’s data, in August 2024, Red Sea signed a contract worth SAR 658 million (VAT exclusive) with global heavy construction contractor Webuild SpA to build a staff camp serving the Trojena Dam project at NEOM.

It added that the contract, valid for 12 months from the signing date, would be executed over two phases, with the first beginning immediately while the second was set for execution based on the client’s approval and in accordance with the contractual terms stipulated in this regard. The value of the second phase was estimated at SAR 228 million.