VA Tech WABAG Limited has announced the cancellation of a previously awarded Letter of Award for a 300 MLD Mega Sea Water Desalination Plant in the Kingdom of Saudi Arabia. The award, initially valued at approximately USD 272 Million, was rescinded by the Saudi Water Authority due to internal reasons. The company is currently engaging with the customer to understand the detailed reasons and the next steps.
Project Cancellation in Saudi Arabia
VA Tech WABAG LIMITED has issued an update regarding a Letter of Award received on July 24, 2025, for a significant project in Saudi Arabia. The project involved the execution of a 300 MLD Mega Sea Water Desalination Plant in the Kingdom of Saudi Arabia, with an approximate value of USD 272 Million (SAR 1,019 Million / INR 2,332 Crores).
Reasons for Cancellation
Following the initial award and subsequent completion of necessary formalities, including the execution of the contract, the company has been informed of the project’s cancellation. The Saudi Water Authority, through the Etimad portal, has notified all tender participants that the tender has been cancelled. The stated reason for this cancellation is internal reasons attributable to the Customer.
Next Steps
WABAG is presently in the process of approaching the Customer to gain a more detailed understanding of the reasons behind the cancellation and to ascertain the next course of action. The company aims to clarify the implications of this development for its business and future engagements in the region.
Project Details
The nature of the order involved the design, engineering, supply, construction, and commissioning of the 300 MLD Mega Desalination Plant, located at Yanbu, Kingdom of Saudi Arabia. The original anticipated date for the execution of the order was July 23, 2025. The company is assessing the impact of this cancellation and will provide further updates as necessary.
Source: BSE
