Dubai Municipality meets $22bn tunnels package bidders
13 May 2025
Dubai Municipality has met with the teams that are planning to bid for the contracts to develop the first two packages of the $22bn Dubai Strategic Sewerage Tunnels (DSST) project.
In a social media post, Fahd Al-Awadhi, director of the drainage and recycled water projects department at Dubai Municipality, said that the municipality had hosted a workshop for the DSST project.
He said the gathering brought together project leaders, technical advisers and public-private partnerships (PPP) specialists to align on the strategic direction, procurement structure and delivery plan for the DSST.
The session covered:
- a comprehensive overview of DSST packages J1 and W
- the shift from a pumped to a gravity-based system
- the engineering, procurement and construction (EPC) and developer procurement timelines
- bid submission structures and evaluation processes
- geotechnical planning and no-objection certificates coordination mechanisms
MEED previously reported that five consortiums have formed or are being formed to bid for the J1 and W contracts.
The overall 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”.
Under the current plan, the $22bn project is broken down into six packages, which will be tendered as PPP packages with concession periods lasting 25-35 years.
The project client, Dubai Municipality, issued the request for proposals for the DSST's J1 and W packages earlier this month.
According to industry sources, the consortiums that have been formed or are forming to bid for the J1 and W contracts include:
- China Railway Construction Corporation (China)
- Etihad Water & Electricity (local) / Larsen & Toubro (India) / Wade Adams (local) / PowerChina (China)
- Itochu (Japan) / Plenary (Australia) / Samsung C&T (South Korea) / Webuild (Italy)
- Vision Invest (Saudi Arabia) / China Railway Engineering Group (China)
A fifth team, led by Belgian contracting firm Besix, is also being formed, according to one of the sources.
MEED understands that bids are due on 30 September for packages J1 and W.
The two packages will be developed using "typical concession agreement" models and will be financed 80:20 by debt and equity.
The consortiums can bid for either or both packages.
DSST six packages
The first package, J1, comprises Jebel Ali tunnels (North) and terminal pump stations (TPS). The tunnels will extend approximately 42 kilometres (km), and the links will extend 10km.
The other tendered package, W for Warsan, comprises 16km of tunnels, TPS and 46km of links.
The remaining packages include J2, which covers the southern section of the Jebel Ali tunnels and will extend 16km and have a link stretching 46km.
J1, J2, W and J3 will comprise the deep sewerage tunnels, links and TPS components of the overall project.
J1, J2 and W will be procured under a design, build, finance, operate and maintain model with a concession period of 25-35 years.
J3 will be procured under a design, build and finance model with a concession period of 25-35 years. Once completed, Dubai Municipality will operate J3, unlike the first three packages, which are planned to be operated and maintained by the winning PPP contractors.
The project’s remaining two packages entail expanding and upgrading the Jebel Ali and Warsan sewage treatment plants. MEED understands that these packages will be procured at a later stage.
Separate contracts for packages J1 and W are being tendered first, followed by J2 and J3, with the requests for proposals to be issued sequentially, staggered about six to 12 months apart.
The overall project will require a capital expenditure of about AED30bn ($8bn), while the whole-life cost over the full concession terms of the entire project is estimated to reach AED80bn.
Photo credit: Dubai Municipality
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