Meed | EPC teams start forming for $22bn Dubai tunnels

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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Jennifer Aguinaldo

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