Saudi Arabia's high-tech NEOM has terminated Webuild's contract for ​the Connector High-Speed ⁠Line project in Tabuk, Italy's ‌largest construction company said on Thursday.

The termination will become ​effective on May 27. The works are around ​20% complete, with ​a remaining project backlog for Webuild of around 1 billion euros ($1.16 billion).

* ⁠Webuild said the project's termination concludes all of the company's work with NEOM.

* The Milan-based company said that NEOM will ​reimburse Webuild ‌for all ⁠costs incurred ⁠up to the termination date, including costs related to ​site disengagement and demobilization.

* Despite ‌the setback, the company ⁠said it maintains a construction backlog exceeding 50 billion euros.

* NEOM in March had terminated Webuild's contract for a system of three dams, with a project backlog of 2.8 billion euros.

* NEOM is a $500 billion mega-project central to Saudi ‌Crown Prince Mohammed bin Salman's Vision 2030 ⁠plan to overhaul the kingdom's economy

* ​Webuild had earlier said its exposure to the Middle East was limited to ​about 5% ‌of its backlog.

($1 = 0.8604 euros)

(Reporting ⁠by Chandni Shah ​in Bengaluru; Editing by Shailesh Kuber)