VA Tech Wabag Contract Cancellation in Saudi Arabia

VA Tech Wabag Ltd has announced the cancellation of a significant contract for a 300 MLD Mega Sea Water Desalination Plant in Saudi Arabia, initially valued at approximately USD 272 Million (INR 2,332 Crores). The company had received a Letter of Award and completed necessary formalities, executing the contract. However, the Saudi Water Authority, through the Etimad portal, notified all participants of the tender's cancellation due to internal reasons attributable to the customer. VA Tech Wabag is currently engaging with the customer to understand the detailed reasons and determine the next steps. This cancellation represents a disruption to a major project for the company.