EPC teams start forming for $22bn Dubai tunnels
24 September 2024
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Some prequalified engineering, procurement and construction (EPC) companies for the contracts to develop and operate various packages of the $22bn Dubai Strategic Sewerage Tunnels (DSST) project have started forming teams in anticipation of the next stage of the tendering process.
In August, Dubai Municipality prequalified 21 companies and consortiums that can bid for three packages known as J1, J2 and W, and 19 for a fourth package known as J3, of the six-package project.
Some companies are in the process of finalising their partners, while at least one has said it does not intend to tap a partner.
While the country of origin is expected to play a role in the formation of teams, it is expected that the complementarity of the companies' expertise and resources will be crucial in the selection process.
The client and its advisers have opted to prequalify EPC contractors ahead of investors in a departure from the classic public-private partnership (PPP) procurement process.
"The idea is to issue the technical information pack to the prequalified EPC contractors before the prequalification process for investors starts, allowing EPC contractors time to undertake the design process," a source familiar with the project recently told MEED.
He added: "These designs should be ready once Dubai Municipality completes the prequalification process for investors, saving roughly three months compared to the usual route, where the prequalification processes for developers and EPC contractors are done simultaneously."
The staggered prequalification process is expected to help ensure the request for proposals process takes about six months rather than the typical nine months.
Six packages
Under the current plan, the $22bn DSST project is broken down into six packages, which will be tendered as PPP packages with concession periods lasting between 25 and 35 years.
The first package, J1, comprises Jebel Ali tunnels (North) and terminal pump stations (TPS). The tunnels will extend approximately 42 kilometres, and the links will extend 10 kilometres (km).
The second package, J2, covers the southern section of the Jebel Ali tunnels, which will extend 16km and have a link stretching 46km.
W for Warsan, the third package, comprises 16km of tunnels, TPS and 46km of links.
J3, the fourth package, comprises 129km of links.
J1, J2 and W will be procured under a design-build-finance-operate-maintain model with a concession period of 25-35 years.
J3 will be procured under a design-build-finance model with a concession period of 25-35 years. Once completed, Dubai Municipality will operate them, unlike the first three packages, which are planned to be operated and maintained by the winning PPP contractors.
J1, J2, W and J3 will comprise the deep sewerage tunnels, links and TPS (DLT) components of the overall project.
The project’s remaining two packages entail the expansion and upgrade of the Jebel Ali and Warsan sewage treatment plants (STPs), and will be procured in a process separate from the four DSST-DLT components.
Prequalified EPC contractors
The prequalified EPC companies for packages J1, J2 and W are:
- Acciona Construccion (Spain) – Dubai branch
- Besix Construct (Belgium)
- China Harbour Engineering (China)
- China Railway Group (China)
- China State Construction Engineering Corporation (China)
- Daewoo Engineering & Construction (South Korea)
- Dogus Insaat VE Ticaret Anonim Sirketi (Turkiye) – Abu Dhabi
- FCC Construcccion (Spain)
- Archirodon Construction (Overseas) Company (Greece) / BESSAC (France)
- China Civil Engineering Construction Corporation – Dubai Branch / Shanghai Tunnel Engineering Company (STEC) / China Railway 14th Bureau Group Corporation
- Gulermak Agir Sanayi Insaat (Turkiye) / DETech Contracting (local)
- National Marine Dredging Company (local) / Afcons Infrastructure (India) / ITD Cementation India
- The Arab Contractors (Osman Ahmed Osman & Company, Egypt) / Darwish Engineering Emirates (local) / AqualiaMACE Contracting Operation & General Maintenance (local)
- Larsen & Toubro (India)
- Porr (Austria)
- Power Construction Corporation of China (China) – Dubai branch
- Samsung C&T Corporation (South Korea) – Dubai Branch
- SK Ecoplant (South Korea)
- Strabag Dubai (Austria)
- The Petroleum Projects & Technical Consultation Company (Petrojet) – Egypt
- Webuild (Italy)
EPC companies that have been prequalified for package J3 are:
- Acciona Construccion (Spain) – Dubai branch
- Alghanim International General Trading & Contracting (Kuwait)
- China Railway Group (China)
- China State Construction Engineering Corporation (China)
- Daewoo Engineering & Construction (South Korea)
- DETech Contracting
- Archirodon Construction (Overseas) Company (Greece) / BESSAC (France)
- China Civil Engineering Construction Corporation (China) – Dubai branch / Shanghai Tunnel Engineering Company (STEC) / China Railway 14th Bureau Group Corporation
- Gulermak Agir Sanayi Insaat (Turkiye) / DETech Contracting (local)
- International Foundation Group (IFG, local) / General Construction Company (local)
- Nael Construction & Contracting (UAE) / Concord for Engineering & Contracting (Egypt) – Dubai branch
- National Marine Dredging Company (local) / Afcons Infrastructure (India) / ITD Cementation India
- Mapa Insaat Ve Ticaret (Turkiye)
- Mohammed Abdulmohsin Al-Kharafi & Sons (Kuwait)
- Porr (Austria)
- Power Construction Corporation of China – Dubai branch
- Strabag (Austria)
- Tecton Engineering & Construction (local)
- The Petroleum Projects & Technical Consultation Company – Petrojet (Egypt)
Market-sounding
Dubai Municipality is expected to hold a market-sounding event for investors, MEED reported in early September .
The event is set to take place during the first week of October, a few weeks before interested investors submit their statements of qualifications (SOQ) for the projects' various packages.
MEED previously reported that the client had extended the SOQ submission deadline from 5 September to 21 October.
Gravity system project
The DSST project aims to convert Dubai’s existing sewerage system from a pumped system to a gravity system by decommissioning the existing pump stations and providing “a sustainable, innovative, reliable service for future generations”.
Dubai currently has two major sewerage catchments. The first in Deira is Warsan, where the Warsan STP treats the flow.
The second catchment is in Bur Dubai, where the wastewater is treated at the Jebel Ali STP.
According to a source close to the project, the DSST will replace 120 pump stations, saving approximately 100 gigawatt-hours of electricity annually.
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Ongoing political turmoil in the region may be prompting Abu Dhabi to review its approach to key diplomatic issues, not least its relations with its larger neighbour, Saudi Arabia.
In late September, UAE Vice-President Sheikh Mansour Bin Zayed Al-Nahyan travelled to Riyadh for talks with Crown Prince Mohammed Bin Salman and Defence Minister Prince Khalid Bin Salman. Such visits may have been commonplace in the past, but over the past year they have been relatively rare, given the friction between the two Gulf powers over issues such as the conflict zones of Yemen and Sudan, relations with Israel and economic rivalry.
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Yemen dynamics
Gains by another group in Yemen may lie behind the latest rapprochement between Riyadh and Abu Dhabi. The visit by Sheikh Mansour on 29 September came in the wake of significant advances by the Houthis, who had recently captured Mokha port and strategically significant areas of land overlooking the Bab El-Mandeb Strait – heightening their ability to menace passing ships.
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Strategic independence
The flurry of diplomatic activity may be a sign of closer coordination between the UAE and its neighbours on some critical issues, but that does not necessarily herald a sea change in its approach.
Speaking at the UN General Assembly in New York on 28 September, Minister of State Khalifa Shaheen Al-Marar reviewed the crises in Iran, Sudan, Gaza, Ukraine and elsewhere and said “the importance of developing and reforming regional and international multilateral institutions … remains paramount” – but while he name-checked the UN, he did not mention the GCC.
It is also notable that the UAE has not yet joined either of the two security initiatives launched by Saudi Arabia during the summer: a maritime defence alliance designed to protect shipping in the Red Sea, or a mutual defence pact that Riyadh signed with Turkiye and Pakistan.
In his speech to the UN, Al-Marar listed what he saw as the main pillars of the UAE’s national strength: “strategic independence” was the first item in his list.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20435670/main.gif -
Abu Dhabi mends fences with Riyadh9 October 2026

Ongoing political turmoil in the region may be prompting Abu Dhabi to review its approach to key diplomatic issues, not least its relations with its larger neighbour, Saudi Arabia.
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At the start of the year, the UAE retreated from Yemen under pressure from Riyadh, after the UAE-backed Southern Transitional Council made rapid territorial gains at the expense of Saudi-backed groups and advanced close to the kingdom’s southern border.
Since then, against the backdrop of the Iran war, relations have shown further signs of strain, with cross-border financial transactions reportedly being blocked or delayed.
However, there have been intermittent attempts to present a more collegial relationship, such as in July, when a photo emerged on social media of Sheikh Mansour and Prince Khalid posing with their arms around each other, reportedly while on holiday in Europe.
Yemen dynamics
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It is also notable that Mansour’s delegation to Riyadh included several senior security officials, including Ali Bin Hammad Al-Shamsi, secretary general of the Supreme Council for National Security; Ali Saeed Matar Al-Neyadi, chairman of the National Emergency, Crisis and Disaster Management Authority; and Nasser Humaid Al-Nuaimi, secretary general of the Tawazun Council for Defence Enablement.
The visit was a surprise, given the GCC states’ lack of unified action this year amid the crises in Yemen and Iran. Speaking at an event in Washington in mid-September, Bernard Haykel, professor of Near Eastern Studies at Princeton University, noted that: “Despite the fact that [the GCC states] all face a common threat in Iran and its proxies, you still don’t see real coordination between them. You still have these differences between the Saudis and the UAE, for instance; you have differences between the Qataris and the UAE. If anything would have united them, this would be it. And you don’t see that kind of unity.”
Writing for the Arab Gulf States Institute in early October, Kristian Coates Ulrichsen, a Baker Institute fellow for the Middle East at Rice University, said Mansour’s visit to Riyadh in late September was “likely meant to signal that the thaw [in bilateral relations] was real” and “designed to enable a more coordinated approach to managing the forces ranged against the Houthis in southern and central Yemen”.
Further signs of warming ties came on 8 October, when UAE Investment Minister Mohamed Hassan Alsuwaidi signed a memorandum of understanding with Saudi Industry and Mineral Resources Minister Prince Abdulaziz Bin Salman covering power grid interconnections, trade in electricity and freight rail connectivity.
On the same day, the Saudi ambassador to the UAE invited President Sheikh Mohamed Bin Zayed Al-Nahyan to attend a GCC-EU Summit in Saudi Arabia later in the month.
Sheikh Mansour was not the only senior Emirati on diplomatic manoeuvres in recent weeks. The day after the vice-president was in Riyadh, national security adviser Sheikh Tahnoun Bin Zayed Al-Nahyan was in Muscat for talks with Sultan Haitham Bin Tariq Al-Said.
Oman is a critical partner for the UAE in several areas. Omani ports have provided a trade lifeline for Emirati importers and exporters at a time when ports in Dubai and Abu Dhabi have been sidelined by Iran’s threats against shipping through the Strait of Hormuz. Muscat’s approach of maintaining dialogue with all actors means it is also able to mediate with both Iran and Yemen’s Houthis.
Strategic independence
The flurry of diplomatic activity may be a sign of closer coordination between the UAE and its neighbours on some critical issues, but that does not necessarily herald a sea change in its approach.
Speaking at the UN General Assembly in New York on 28 September, Minister of State Khalifa Shaheen Al-Marar reviewed the crises in Iran, Sudan, Gaza, Ukraine and elsewhere and said “the importance of developing and reforming regional and international multilateral institutions … remains paramount” – but while he name-checked the UN, he did not mention the GCC.
It is also notable that the UAE has not yet joined either of the two security initiatives launched by Saudi Arabia during the summer: a maritime defence alliance designed to protect shipping in the Red Sea, or a mutual defence pact that Riyadh signed with Turkiye and Pakistan.
In his speech to the UN, Al-Marar listed what he saw as the main pillars of the UAE’s national strength: “strategic independence” was the first item in his list.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20432716/main.gif