In a statement to the Malaysian stock exchange, MMC said that the joint venture company, Jazan Economic City, had received a letter from the Saudi Arabian General Investment Authority "informing that the rights of MMC and SBG as the developer of Jazan Economic City ...had been terminated with immediate effect".
"The termination was as a result of circumstances which gave rise to several difficulties that interrupted the progress of the project," it added.
The statement also said that it was too early to tell what impact the termination would have on its financial results.
"The board will be engaging advisers to advise on matters relating to the termination and compensation," it said.
Up to 500,000 jobs were meant to be created at Jazan Economic City - supporting a projected population of over 1.5m.
The masterplan for the city was based around the development of a number of heavy industry projects, as well as secondary industries and other trade activities.
Deals had previously been signed to build an aluminium smelter capable of developing one million metric tonnes a year, for a refinery with Saudi Aramco and for a major steel plant. A major port had also been planned for the city.
No comments:
Post a Comment