In a Nov. 14 filing, Indian contractor VA Tech Wabag said Saudi Water Authority canceled the tender for a planned Yanbu desalination plant valued at $272 million and designed to process 300 million liters a day. The authority notified all tender participants through the Etimad portal, citing internal reasons attributable to the customer, Wabag said. The company is seeking a fuller explanation and details of its next steps.
Wabag announced the award in July 2025, valuing it at $272 million, or SAR 1.019 billion and ₹2,332 crore. The contract covered the design, engineering, supply, construction and commissioning of the plant. Wabag said it had completed the formalities and submitted its executed contract to Saudi Water Authority for countersignature and formal project commencement.
The filing does not explain what specifically prompted the latest cancellation, quantify its financial impact or say whether compensation is due. Wabag’s investor presentation on Nov. 5 listed Yanbu among key projects in its H1 FY27 backlog, which stood at INR 202,071 million at Sept. 30. That presentation predates the cancellation and does not show the project’s status afterward.
The tender had already been reissued once. Wabag announced a first award for a 300 MLD Yanbu plant in September 2024, valued at about $317 million. In February 2025, Group CFO Skandaprasad Seetharaman said the client had wanted to change the project’s scope and specifications, prompting a retender. Wabag announced a new award in July 2025 and described it as its second success on the project.
That history shows repeated changes to the procurement process, but the available filings do not establish that the earlier scope revisions caused the latest cancellation. For now, the stated reason remains customer-side internal matters, with Wabag awaiting clarification from the authority.
