Saudi Arabia is set to pay contractors billions of dollars to resolve a dispute over the Riyadh metro, people familiar with the matter said, taking the long-delayed project one step closer to completion.
Two out of three consortia, which include Bechtel Group Inc. and Alstom SA, have already reached an agreement for the disputed payments, the people said, asking not to be identified as the information is private. The third group, which includes Italy’s Webuild SpA, is expected to sign a deal soon, they said.
Contractors working on the project were pursuing several billions of dollars in payments in total, with Bechtel asking for around $1 billion, Bloomberg has reported.
An agreement would mark a turning point in a dispute that has dragged on for years and hampered government efforts to upgrade the traffic-clogged Saudi capital. It would also help ease lingering concerns about the kingdom’s attitude toward contractor payments.
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