Expectation mounts as Dubai tunnels tender nears
20 February 2025

Prequalified firms have been speculating about the project structure that will be offered to developers; engineering, procurement and construction (EPC) contractors; and operations and maintenance companies for the first two packages of the $22bn Dubai Strategic Sewerage Tunnels (DSST) project.
"We are keen to find out if the client will be issuing a lease or licence," one source told MEED, adding that there has also been speculation about whether a sovereign guarantee will be issued, and by whom.
The tender for the first two packages of the DSST project is expected to be issued before the end of this month.
Given the scale of each package and the capital expenditure required, it is also unclear whether the project client, Dubai Municipality, will require 50% committed financing for bid purposes, noted another source.
At least four companies have been prequalified as lead members of potential consortiums that can bid for the contracts.
MEED previously reported that the firms that have been prequalified as lead members for the project's four main tunnels and links packages include Ajman-based Etihad Water & Electricity, a team comprising Japan's Itochu and Australian investment firm Plenary, and Saudi Arabia's Vision Invest.
Belgium's Besix is also understood to be among those prequalified to bid as a developer lead member.
According to industry sources, the Plenary-Itochu consortium will likely include South Korea's Samsung C&T and Italy's Webuild.
MEED understands that final partnering negotiations are still under way for the other teams.
The EPC team of Abu Dhabi's National Marine Dredging Company and India's Afcons Infrastructure, and separately PowerChina, are understood to be engaged in final talks with either the Vision Invest or Etihad Water & Electricity consortiums, although it has also been suggested that Vision Invest and Etihad Water & Electricity could bid as one team.
"There is a possibility of team consolidation due to lack of bankable EPC," one of the sources said.
The same source said that Japan's Marubeni and Saudi Arabia's AlJomaih Water & Energy might also still be considering bidding for the contracts.
MEED reported in October that more than a dozen companies were keen to prequalify as investors or sponsors for the planned public-private partnership (PPP) project.
They included:
- Abrdn Investcorp Infrastructure Investments Manager (UK)
- Besix (Belgium)
- China Railway Construction Corporation (CRCC)
- China Railway Engineering Group (CREG)
- China State Construction Engineering Corporation (China)
- Itochu (Japan)
- Nesma Company (Saudi Arabia)
- Plenary (Australia)
- Samsung C&T (South Korea)
- Vision Invest (Saudi Arabia)
- Webuild (Italy)
Six packages
It is understood that packages J1 and W will be tendered together as separate contracts first, followed by J2 and J3, with the requests for proposals to be issued sequentially, staggered about six to 12 months apart.
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 package, W for Warsan, comprises 16km of tunnels, TPS and 46km of links.
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.
The investor prequalification process for the scheme comes after the client prequalified EPC contractors that can partner with the developers or investors to bid for the contracts.
The prequalified EPC contractors for the J1 and W packages, along with the J2 package, 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)
DSST 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.
In addition to J1 and W, J2 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 (TLT) 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.
READ MEED’s YEARBOOK 2025
MEED’s 16th highly prized flagship Yearbook publication is available to read, offering subscribers analysis on the outlook for the Mena region’s major markets.
Published on 31 December 2024 and distributed to senior decision-makers in the region and around the world, the MEED Yearbook 2025 includes:
|
> PROJECTS: Another bumper year for Mena projects
> GIGAPROJECTS INDEX: Gigaproject spending finds a level
> INFRASTRUCTURE: Dubai focuses on infrastructure
> US POLITICS: Donald Trump’s win presages shake-up of global politics
> REGIONAL ALLIANCES: Middle East’s evolving alliances continue to shift
> DOWNSTREAM: Regional downstream sector prepares for consolidation
> CONSTRUCTION: Bigger is better for construction
> TRANSPORT: Transport projects driven by key trends
> PROJECTS: Gulf projects index continues ascension
> CONTRACTS: Mena projects market set to break records in 2024
|
Exclusive from Meed
-
Egypt seeks to accelerate gas pipeline project with Libya10 November 2026
-
Omani company signs Kuwait drilling contract10 November 2026
-
Aramco-backed firm tenders logistics hub expansion9 November 2026
-
Prequalification begins for multibillion-dollar Dubai road9 November 2026
-
Contractor begins early works on Ardara’s AlWadi project9 November 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Egypt seeks to accelerate gas pipeline project with Libya10 November 2026
Egypt aims to accelerate a range of energy projects with Libya, including gas pipeline links, according to a statement from the Egyptian Foreign Minister Badr Abdelatty.
Other projects include a scheme to refine Libyan crude in Egypt and an electricity interconnection.
Abdelatty’s comments came in a ministry statement after a meeting with Libya’s acting oil and gas minister, Khalifa Abdulsadek, in the Libyan capital of Tripoli.
Egypt is currently trying to address an energy squeeze that has escalated due to elevated global liquefied natural gas (LNG) prices since the start of the US-Israeli war on Iran in February of this year.
In his statement, Abdelatty called for cooperation on petroleum products and the completion of projects to refine Libyan oil in Egypt and re-export it.
He also said that Abdulsadek would visit Cairo soon to continue technical talks with Egypt’s petroleum and electricity ministers.
The statement did not provide details on costs or the status of the projects.
Plans for new gas pipeline links with Libya are just one of several ambitious gas pipeline plans Egypt is pursuing.
In October, the Italian oil and gas company Eni signed the main engineering, procurement, construction and drilling contracts for a project to export gas from reserves in Cyprus using a major pipeline to Egypt.
The project includes contracts with several companies that will develop infrastructure in both Egypt and Cyprus.
The awards included a $170m contract won by Egypt’s Petrojet for a new onshore gas pipeline in Egypt that will help transport gas to Egypt’s Damietta LNG facility.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21273777/main.jpg -
Omani company signs Kuwait drilling contract10 November 2026
Oman’s MBPS has signed a drilling rig contract worth $127.3m with state-owned upstream operator Kuwait Oil Company (KOC).
Under the terms of the deal, MBPS will supply and operate three newly built 1,000-horsepower land rigs for drilling and workover operations, according to a company statement.
The UAE-based oil field services company Adnoc Drilling is a majority shareholder in MBPS.
The chief executive of MBPS, Salim Al-Harthy, said: “This is another important milestone for MBPS and a strong reflection of KOC’s confidence in our capabilities.
“It further strengthens our presence in Kuwait and our commitment to delivering safe, reliable and efficient drilling and workover services across the region.”
He : “My sincere appreciation to KOC for their continued trust, and to our MBPS team for their hard work and dedication in making this possible.”
In October last year, KOC said it planned to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.
The spending was part of a KD9.8bn budget, the company’s biggest ever, allocated for drilling and maintenance of up to 6,193 wells by the end of this decade.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21273731/main.png -
Aramco-backed firm tenders logistics hub expansion9 November 2026

Asmo, the logistics joint venture of Saudi Aramco and DHL Supply Chain, has set a 15 November deadline for a contract to expand the logistics complex at King Salman Energy Park (Spark) in Saudi Arabia’s Eastern Province.
The logistics hub will add over 124,000 square metres (sq m) at Spark.
Al-Khobar-based engineering firm House of Consulting Office is the project consultant.
The tender for the expansion works comes shortly after Asmo awarded an estimated SR820m ($218m) contract to build the logistics complex’s first phase in May this year.
The overall project will feature a 43,000 sq m, temperature-controlled Grade A warehouse; more than 3,000 sq m of offices and staff amenities; 5,300 sq m dedicated to chemicals storage; and an open yard covering about 1.2 million sq m.
Asmo signed an agreement with Bahrain‑headquartered Arcapita Group Holdings in February to deliver the project at Spark.
Planned for large-scale industrial use, the site is expected to incorporate advanced warehouse and building management systems, end-to-end digital connectivity, automation and robotics.
It will also be developed in line with internationally recognised sustainability standards, featuring solar photovoltaic readiness, electric-vehicle charging infrastructure and a target of Leed Gold certification.
The development aims to support the next stage of Saudi Arabia’s logistics and supply chain expansion.
Under the deal structure, Arcapita will provide funding and retain ownership of the asset, while Asmo will develop the facility and then lease and operate it under a 22-year occupational lease.
According to a statement, “the scheme will be executed via a forward-funding model, underscoring a long-term commitment to national infrastructure”.
Asmo added that this will be its first purpose-built logistics centre and one of four strategic locations planned to anchor its nationwide logistics network, aligned with the National Transport and Logistics Strategy under Saudi Vision 2030.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21267403/main.gif -
Prequalification begins for multibillion-dollar Dubai road9 November 2026

Dubai’s Roads & Transport Authority (RTA) has begun prequalifying contractors for a design-and-build contract for a multibillion-dollar new road that will run parallel to Sheikh Zayed Road.
Contractors have until 30 November to submit their prequalification statements.
The latest development follows contractors’ expressions of interest for the project on 10 October, as MEED reported.
The project’s scope covers about 30 kilometres (km) of works. These include about 15km of viaduct along First Al-Khail Street and more than 14.5km of bridge ramps, along with other associated infrastructure works.
The project is another significant initiative aimed at alleviating pressure on the existing Sheikh Zayed Road section from Hadiqa Street to Hessa Street.
Dubai has previously explored bold concepts to expand capacity on Sheikh Zayed Road, including proposals to introduce double-decker sections to add extra lanes without widening the existing corridor.
The idea was discussed in the context of rising congestion and limited right-of-way along one of the city’s busiest arterial roads, with elevated decks potentially carrying through traffic while existing at-grade lanes served local access.
The plans ultimately became standalone schemes, with subsequent efforts focusing instead on corridor-wide upgrades, interchange improvements and complementary public transport expansions to manage demand more sustainably.
The latest project aligns with Dubai’s continued investment in upgrading and expanding its road network to keep pace with rapid population growth and rising commuting demand.
Planning for growth
Dubai launched the 2040 Urban Master Plan in March 2021, referencing studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.
In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan.
In addition to the road projects, the RTA’s Dubai Metro Blue Line extension and Dubai Metro Gold Line form part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.
The policy aims to ensure residents can meet 80% of their daily needs within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21266194/main.gif -
Contractor begins early works on Ardara’s AlWadi project9 November 2026
Saudi Arabia’s Shibh Al-Jazira Contracting Company (Sajco) has started early construction works on the first cluster of its AlWadi mixed-use development in Abha.
Ardara, backed by the sovereign wealth vehicle the Public Investment Fund (PIF), is developing the AlWadi project.
Sajco will carry out sewerage works, while local engineering firm Dar Al-Riyadh will provide project management and supervision services for the infrastructure works.
The AlWadi project will cover 2.5 million square metres (sq m) and will be developed around architectural styles informed by the heritage and character of the Aseer region.
The masterplan has a planned gross floor area of about 2.02 million sq m. It includes 7,306 apartments, 90 villas and townhouses, and 2,783 hotel keys.
The scheme will also provide 154,082 sq m of retail and food and beverage space, 64,161 sq m of offices, and 59,075 sq m of leisure and entertainment facilities.
The wider development will comprise five districts and include 16 kilometres of waterfront assets and 17km of walking, cycling and sports tracks.
US-based Parsons is the infrastructure designer, while Miami-based OBMI is providing architectural and public realm design services.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21265927/main.jpg