Saudi government has terminated a contract awarded to South Korea’s Samsung Engineering for building a 3,100-MW power and desalination plant on the Red Sea coast in the industrial city of Yanbu, due to differences over the final construction terms, said a report.
The engineering, procurement and construction (EPC) contract for the $3-billion project was awarded by state-owned Saline Water Conversion Corporation to a consortium led by the Korean company in 2012.
Samsung was the main contractor for the power plant, commanding half, or $1.5 billion in lump-sum contract value, it stated.
About 55 per cent of the construction has been completed, said the report, citing a source.
The contract was initially due to be completed by December 28 last year, but pushed back to August 25 next year upon agreement, it added.