March 25 (Reuters) - Italian construction firm Webuild said on Wednesday that Saudi Arabia's high-tech project Neom had terminated a contract with it to build a system of three dams.

The termination will take effect on March 29. Approximately 30 percent of the work has been completed, with the project's backlog for Italy's largest construction company amounting to nearly €2.8 billion ($3.3 billion).

The project aimed to create a 2.8-kilometer-long lake in a desert area as part of the development plans for the Trogina mountain resort ahead of the 2029 Asian Winter Games.

In January 2024, WeBuild won the contract, which has a total value of $4.7 billion.

The company says Neom has also terminated contracts with other contractors in the region.

Webbled says the group was not harmed by this termination.

The volume of backlogged construction work, after deducting the remaining contract-related activities, still exceeds 50 billion euros.

The project was expected to provide employment opportunities for 10,000 people, both directly and indirectly.

(US$1 = €0.8628)