EPC teams start forming for $22bn Dubai tunnels

24 September 2024

Register for MEED's 14-day trial access 

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. 

https://image.digitalinsightresearch.in/uploads/NewsArticle/12590337/main0016.jpg
Jennifer Aguinaldo
Related Articles
  • Riyadh qualifies five groups for One-Stop Stations PPP

    2 February 2026

    Saudi Arabia’s Roads General Authority (RGA), in collaboration with the National Centre for Privatisation & Public-Private Partnership (NCP), has qualified five groups for a contract to develop the kingdom’s One-Stop Station project on a public-private partnership (PPP) basis.

    The groups include:

    • Al-Ayuni Investment & Contracting Company / Al-Jeri
    • IC Ictas / Algihaz Holding / Al-Drees
    • TechTrade Global / Al-Habbas / Fuelax / Markabat / Naqleen Company
    • Petromin / Red Sea Housing
    • Asyad / Sasco

    The project includes the development of facilities at several locations across the RGA’s 73,600-kilometre intercity road network.

    The facilities include refuelling stations, commercial outlets, parking lots, driver rest areas, vehicle maintenance centres and other hospitality amenities.

    The project will be implemented under a 30-year design, build, finance, operate and maintain (DBFOM) contract, and will be tendered in three waves comprising six packages.

    The first wave will include the initial package, the second wave will encompass the second and third packages, and the third wave will cover the remaining three packages.

    In August last year, 49 Saudi and international firms expressed interest in the contract to develop the kingdom’s One-Stop Station project, as MEED reported.

    In January, Saudi Arabia launched a National Privatisation Strategy, which aims to mobilise $64bn in private sector capital by 2030.

    The strategy was approved by Saudi Arabia’s Minister of Finance and chairman of the National Centre for Privatisation (NCP), Mohammed Bin Abdullah Al-Jadaan.

    The strategy builds on the privatisation programme, which was first introduced in 2018. It will focus on unlocking state-owned assets for private investment and privatising selected government services.

    The value of PPP contracts in Saudi Arabia has risen sharply over the past few years as the government seeks to develop projects through the private sector and diversify funding sources

    PPPs have been used in Saudi Arabia and the wider GCC region for over two decades, but have primarily been limited to power generation and water desalination projects, where developers benefit from guaranteed take-or-pay power purchase agreements that eliminate demand risk.

    As capital expenditure continues to increase, the NCP is expected to add dozens more PPPs to its future pipeline to reduce the state’s financial burden and stimulate private sector involvement in the local projects market.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15551647/main.jpg
    Yasir Iqbal
  • Jordan allows phosphate rail line bidders more time

    30 January 2026

     

    Abu Dhabi’s National Infrastructure Construction Company (NICC), a subsidiary of Etihad Rail, has allowed contractors until 15 February to submit their proposals for a contract to build the second section of the phosphate railway line that will run from Ghor Al-Safi to Aqaba in Jordan.

    The tender was issued on 27 December, with an initial bid submission deadline of the end of January.

    The scope of work for the railway includes civil engineering, tunnel construction, and mechanical, electrical and plumbing (MEP) works.

    Tendering is also ongoing for the first section of the line. NICC is preparing to award the contract for the first section of the railway line, stretching from Al-Shidiya to Aqaba.

    MEED understands that the evaluation is in its final stages and that the contract will be awarded soon.

    In April last year, a French-Swiss joint venture of Egis and Arx was awarded the design consultancy contract for the project.

    Etihad Rail announced in September 2024 that it had signed a memorandum of understanding (MoU) worth $2.3bn with Jordan’s Transport Ministry and local companies to develop the phosphate railway line.

    In an official statement, Etihad Rail said it had signed an agreement with Jordan to build, operate and maintain the project.

    The statement added that additional MoUs were signed with Jordan Phosphate Mines Company and Arab Potash Company to transport 16 million tonnes a year of phosphate and potash from mining sites to the Port of Aqaba via the Jordanian railway network.

    The MoUs also cover the manufacture and supply of rolling stock; the construction of terminals in Aqaba, Ghor Al-Safi and Shidiya; and the maintenance, repair and operation of the railway line. 

    Project history

    In 2015, Jordan’s Transport Ministry tendered a contract to construct the Shidiya rail link, intended to transport 6 million tonnes a year of phosphate from mines in Shidiya to Wadi Al-Yutum, near Aqaba.

    In November of that year, a joint venture of China Communications Construction Company and the local contractor Masar United was confirmed as the lowest bidder. It was awaiting the formal award to build the 21-kilometre spur line.

    The project was subsequently put on hold due to funding issues.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15541534/main.jpg
    Yasir Iqbal
  • Acwa Power to develop $200m solar plant in Philippines

    30 January 2026

    Saudi Arabia’s Acwa Power is investing $200m to build a large-scale solar photovoltaic (PV) plant in the Philippines.

    The renewables developer finalised the agreement with the Philippine government-owned Bases Conversion & Development Authority (BCDA) on the sidelines of the World Economic Forum in Davos last week.

    Under the reservation agreement, a 500-hectare site has been selected within the New Clark City Special Economic Zone in Tarlac province, north of Manila.

    The project must undergo a pre-feasibility study, technical assessments and regulatory approvals before any final investment decision is made.

    The collaboration will also explore “potential battery energy storage system (Bess) integration,” Acwa Power said in a statement. 

    No details were provided on the project’s potential power generation capacity.

    The reservation agreement follows a memorandum of understanding (MoU) signed between Acwa Power and BCDA in Riyadh last November.

    Since then, the partners have evaluated multiple locations in New Clark City and shortlisted the 500-hectare site for further technical and commercial evaluation.

    Acwa Power said it is targeting a threefold increase in its global assets under management to $250bn by 2030.

    The company currently has a global renewables portfolio of 52GW, accounting for 56% of its total power capacity, and plans to deploy 5.6GWh of battery energy storage capacity.

    As part of its foreign investment plans, the company also recently signed major agreements for large-scale renewable energy projects in Uzbekistan.

    This comprised $1.8bn in financing for the Samarkand solar and battery energy storage project, Uzbekistan’s biggest solar development.

    The project is being developed in partnership with Japan’s Sumitomo Corporation, Chubu Electric Power and Shikoku Electric Power.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15541146/main.jpg
    Mark Dowdall
  • Algeria plans Constantine tramway extension

    30 January 2026

     

    Algeria is planning another extension of its Constantine tramway network, which currently runs from Ben Abdelmalek Stadium in the city centre to the Ali Mendjeli area.

    The project client, Algiers Metro Company (EMA), received bids on 14 December last year from consultants for a tender to undertake feasibility and detailed preliminary design studies for the project.

    The client had tendered the contract in October.

    The current tramway network spans approximately 19.3 kilometres (km).

    The tramway is owned by EMA and operated by Societe d’Exploitation des Tramways (Setram), a joint venture of EMA and French firm RATP Group.

    The first route of the tramway, with a length of 9km, was commissioned in July 2013, according to GlobalData’s sister company, Railway Technology.

    The expansion phase began in July 2015 and was completed in June 2019, increasing total ridership to over 30,000 passengers a day.

    The initial 9km-long section of the Constantine tramway system runs from the Zouaghi terminal to the Ben-Abdelmalek Stadium station through the old town and the university area.

    The route includes 11 stations, three of which are multimodal, two viaducts measuring 465m and 114m long, and an underpass.

    A 65,000-square-metre ground-level depot serves the fleet for maintenance and train parking.

    The Ben-Abdelmalek Stadium was renovated as part of the project to accommodate the line's passage.

    Contractors involved 

    EMA awarded a contract for the tramway line extension to France’s Alstom and the local firm Cosider Travaux Publics consortium in July 2015.

    Spanish firm Idom was awarded the detailed design and construction works management, while US-based engineering firm Aecom was responsible for civil engineering and urban planning.

    Cital, a joint venture of EMA, Spain’s Ferrovial and Alstom, delivered 24 trainsets to open the first phase of the extension in 2019.

    The company also maintains 51 trainsets and the infrastructure of the Constantine tramway.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15540773/main.jpg
    Yasir Iqbal
  • Dewa desalination plans offer timely boost

    30 January 2026

    Commentary
    Mark Dowdall
    Power & water editor

    Dubai Electricity & Water Authority (Dewa) is taking early steps towards procuring its second independent water producer (IWP) project, a signal that the utility may be further expanding its role from service provider to long-term utility asset developer.

    Consultancy bids were received this week for a pre-feasibility study that will assess capacity and location requirements for a planned seawater reverse osmosis (SWRO) desalination plant.

    The project, being pursued with Etihad Water & Electricity (EtihadWE), would build on the 180-million-imperial-gallons-a-day Hassyan IWP, awarded to Saudi Arabia’s Acwa Power in 2024.

    It would also align with Dewa’s wider objective to lift Dubai’s desalination capacity to 750 million imperial gallons a day by 2030, from around 495 million today. Achieving that target may require a further pipeline of privately developed water assets between now and then.

    A useful point of comparison lies in Saudi Arabia’s power sector. Saudi Electricity Company has increasingly relied on independent power producers over the past decade to accelerate capacity expansion, ease pressure on public capital spending and deepen the project finance ecosystem.

    For regional developers, competition in Saudi Arabia’s water market continues to intensify. In December, Saudi Water Partnership Company (SWPC) prequalified 50 developers to bid for five upcoming IWPs and 63 developers for independent sewage treatment plant (ISTP) projects.

    Unlike Saudi Arabia, the UAE entered 2026 with limited visible momentum in desalination. EtihadWE’s $400m Fujairah SWRO IWP is the only large desalination plant expected to be tendered this year.

    In a crowded market, increased activity by Dubai’s utility would provide a welcome boost.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15540724/main.jpg
    Mark Dowdall