Qatars Public Works Authority (Ashghal) has signed a revised contract with South Koreas Daewoo Engineering & Construction (Daewoo E&C) for the construction of the north-south link of the E Ring Road.
At $590m, the revised contract is $140m lower compared to the original value signed in September 2016.
The reduction in contract value follows a revision to the original plan, a South Korean media report said.
The project is part of Qatars multibillion dollar Expressway Programme.
The contract calls for Daewoo E&C to add a 4.5-kilometre extension to Qatars E-Ring expressway, while also building 4 kilometres of roads with three multilevel intersections.
Qatars expressway programme contains provisions for a total of 35 road schemes to be executed between 2010 and 2017. It will deliver a total of 900km of mainline carriageway and about 200km at grade and multi-level intersections.
In January, Ashghal retendered work for the design and construction of the Al-Bustan North road, also a key segment of its expressway programme.
A team comprising Turkeys Yuksel Insaat and Spains Ferrovial, which said it won the contract worth $789m in September last year, did not submit an offer. A source familiar with the project cited difficulties during the contract negotiation that led to the retendering of the contract.