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Dubai begins $22bn tunnels developer prequalification

25 July 2024

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Dubai Municipality has invited firms to submit their statements of qualifications (SoQs) for the contracts to develop and operate various packages of the $22bn Dubai Strategic Sewerage Tunnels (DSST) project.

According to industry sources, the client expects to receive SoQs by 5 September.

The start of the developer prequalification process for the scheme, which is being procured on a public-private partnership (PPP) basis, comes after the client initiated the prequalification process for engineering, procurement and construction (EPC) contractors.

EPC companies submitted their SoQs in late April.

International, regional and local EPC contractors are understood to have sought to prequalify to bid for the contracts.

The 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 sewage treatment plant (STP) treats the flow.

The second catchment, called Jebel Ali, is in Bur Dubai, where the wastewater is treated at the Jebel Ali STP.

MEED previously reported that the overall project will require a capital expenditure of roughly AED30bn ($8bn), while the whole life cost over the full concession terms of the entire project is estimated to reach AED80bn.

DSST-DLT packages

Under the current plan, the $22bn DSST project is broken down into six packages, which will be tendered separately 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 10km. 

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. 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 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.

J1, J2, W and J3 will comprise the deep sewerage tunnels, links and TPS (DLT) components of the overall project.

MEED understands the project’s remaining two packages, the expansion and upgrade of the Jebel Ali and Warsan STPs, will be procured in a process separate from the four DSST-DLT components.

The RFPs for the four DSST-DLT packages will likely be issued sequentially, staggered around six to 12 months apart.

The bidders for each of the PPP requests for proposals (RFPs) will be prequalified consortiums comprised of sponsors, EPC contractors and operation and management (O&M) contractors.

Dubai Municipality has appointed Abu Dhabi-headquartered Tribe Infrastructure Group as lead and financial adviser, UK-based Ashurst as legal adviser and US-based Parsons as technical adviser for the DSST project.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12219458/main.jpg
Jennifer Aguinaldo

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