According to five people familiar with the situation, the US-based Bechtel Corp. and other foreign companies are seeking Saudi Arabia's government for billions of dollars in pending bills related to the Riyadh metro project.

According to four of the citizens, Bechtel is owed about $1 billion for the transportation system, which is a major aspect of the government's efforts to improve the congested Saudi capital. According to two of the people familiar with the project, companies working on it are chasing outstanding debts totaling many billions of dollars, with Bechtel owing the most.

According to three of the citizens, the delayed payments are partially due to work delays and cost overruns caused by the coronavirus pandemic, which stranded some employees outside the kingdom and rendered it difficult to keep up with the project's speed. Last year, the American, French, and Spanish embassies in Riyadh raised the issue in a letter to the Saudi government, according to two of the citizens.

Since a 2015 oil price collapse led to authorities freezing tens of billions of dollars to help bring in a skyrocketing budget deficit. Government contractors have protested for years about late payments. While this decision helped to hold state spending in check, it also shook the private sector's confidence in government contracts.

Officials have stated that they are responsible to pay on time and have taken substantial measures to address the issue. The drop in oil prices last year appears to have caused some businesses to experience similar delays, but the issue appears to be less widespread than before.

A request for comment from Bechtel was not returned. Payments to contractors "have been made promptly," according to the Royal Commission for Riyadh City, which oversees the project, and the above allegations are said to be evaluated as per a dispute resolution procedure stipulated within the contract.

Spain's Fomento de Construcciones & Contratas SA, the United Kingdom's WS Atkins Ltd., and Italy's Salini Impregilo SpA, which has been rebranded as Webuild, are among the other companies involved in the project.

Crown Prince Mohammed bin Salman's plans to double the city's size and turn it into an international business hub depend heavily on the Riyadh metro. It is one of the world's largest projects of its kind, with six lines being constructed by three consortia and being around 90% complete.