Saudi Arabia is set to pay contractors potentially billions of dollars to resolve a dispute over the Riyadh Metro, taking the long-delayed project one step closer to completion, according to a Bloomberg report.

 

Two out of three consortia, which include Bechtel Group and Alstom, have already reached an agreement for the disputed payments, said the report quoting people familiar with the matter who asked not to be identified as the information is private. The third group, which includes Italy’s Webuild, 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, the report stated, adding that the terms of the settlements are unclear.

 

According to Bloomberg, 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. 

 

Saudi Arabia awarded contracts worth about $22 billion in 2013 to develop the metro system, which includes roughly 175 km of rail track. The project was originally due to be completed in 2019.