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• 
  UAE PPP activity rises

  8 October 2024

  

   

  All eyes are on Dubai in the final quarter of the year as it endeavours to bring to the market its largest infrastructure project to date.

  The prequalification process is under way for potential investors for the planned $22bn Dubai Strategic Sewerage Tunnels (DSST) project, which will be procured on a public-private partnership (PPP) basis.

  The project's ambitious scope includes converting 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 is in Bur Dubai, where the wastewater is treated at the Jebel Ali STP.

  The DSST will replace 120 pump stations, saving approximately 100 gigawatt-hours of electricity annually, MEED has been told. 

  The 25-35-year design-build-finance procurement model is also ambitious, given that Dubai has a dismal PPP track record, with the exception of electricity and water generation projects.

  The DSST project has met major interest from engineering, procurement and construction (EPC) contractors. A total of 21 individual companies and consortiums prequalified to bid for the project’s three tunnels and terminal pump station packages – J1, J2 and W. Nineteen have been prequalified to bid for package J3.

  The client is expected to run a separate prequalification process for the packages to upgrade the two existing STPs.

  At the time of writing, Dubai Municipality, the project client, has yet to receive the statements of qualifications from interested investors.

  Industry sources have indicated, however, that those that have shown early interest include Japan's Marubeni Corporation and Itochu, Australia's Plenary Group, Belgium's Besix, China Railway Engineering Corporation and China Harbour Engineering Company, and potentially some Israeli investors.

  The project is essential to support Dubai’s economic expansion and sustainability ambitions, notes a source close to the scheme, stopping short of saying that the lack of suitable infrastructure could limit the extent to which the emirate can grow.

  So far, while everyone agrees that the project is imperative, some need further convincing of the likelihood of success for the project’s chosen PPP route.

  “It is a civil construction project with limited operation and maintenance scope,” says a senior executive with an infrastructure investor, who adds that the government of Dubai can raise a bond much cheaper than equity.

  A senior transaction adviser not linked to the project notes, however, that since PPPs are a combination of debt and equity, “overall, PPPs are cheaper for governments”.

  The latter adds that the PPP route is doable if the project is tendered in phases or one at a time, as is currently planned.

   Water desalination and treatment projects

  In recent months, the UAE has also seen an uptick in water desalination plants utilising reverse osmosis technology.

  Three independent water projects (IWPs) are under construction, including Abu Dhabi’s Mirfa 2 and Shuweihat 4, and Hassyan 1 in Dubai. The three seawater reverse osmosis (SWRO) plants have a total combined capacity of 370 million imperial gallons a day (MIGD).

  Negotiations are under way for the contract to develop Abu Dhabi’s next IWP on Saadiyat Island, while the request for qualifications for another project, the 90MIGD Al-Nouf IWP, is expected to be issued in December this year or January 2025.

  Sharjah Electricity & Water Authority (Sewa) also awarded the contract to develop its first IWP scheme this year to Saudi Arabia-headquartered Acwa Power, which was the tender’s sole bidder.

  The $682m, 90MIGD project is expected to reach financial close soon.

  "This is Sharjah’s first IWP and, unlike other jurisdictions such as Oman, Abu Dhabi and Saudi Arabia, the emirate has yet to establish a track record with PPPs, especially in power and water," says Robert Bryniak, CEO of Dubai-based Golden Sands Management (Marketing) Consulting.

  He notes that once the Hamriyah IWP reaches financial close and commercial operations, Sewa should be able to attract more developers for future IWPs. 

  Sewa is not the only utility launching its maiden IWP. Etihad Water & Utility (Etihad WE) is understood to have conducted a market-sounding event earlier this year for a small SWRO plant to complement the capacity of an existing facility in Ghalilah in Ras Al-Khaimah, another of the UAE's northern emirates.

  Ras Al-Khaimah's Public Services Department and Investment & Development Office have also started the tendering proceedings for the emirate's first independent sewage treatment plant project.

  The proposed plant will be able to treat 60,000 cubic metres a day (cm/d) of sewage water, which could be expanded to 150,000 cm/d.

  The project has garnered strong interest from the market, with the following companies and consortiums having been prequalified to bid for the contract:

  • Acciona (Spain)
  • Besix (Belgium)
  • China Harbour Engineering Company (China) / BOWT
  • Cobra (Tedagua, Spain)
  • GS Inima (Spain/South Korea) / Alkhorayef Water & Power Technologies (Saudi Arabia)
  • Etihad Water & Electricity (UAE) / Saur (France)
  • FCC Aqualia (Spain)
  • MA Kharafi (Kuwait) / Passavant Energy & Environment (UAE, Germany)
  • Metito
  • Miahona Company (Saudi Arabia)
  • Orascom Construction (Egypt)
  • Sustainable Water Solutions (UAE)
  • Veolia Middle East (France / local)

  MEED understands that the scope of the build, own, operate and transfer scheme will include extensive sewerage and distribution works, in addition to the STP.

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  Jennifer Aguinaldo
• 
  Abu Dhabi invests $101m in Jordan health ICT

  8 October 2024

  The Abu Dhabi Fund for Development (ADFD) has announced an investment of AED370m ($101m) to support the digital transformation of the Jordanian Health Ministry.

  This initiative is part of the UAE’s broader grant to enhance development projects aligned with Jordan’s Economic Modernisation Vision 2023-25, which has a total funding of AED1.47bn.

  The 7 October announcement coincided with the visit of UAE President Sheikh Mohamed Bin Zayed Al-Nahyan to Jordan.

  UAE-based company Presight, in partnership with the Jordanian Digital Economy & Entrepreneurship Ministry, will implement the project.

  The ADFD said: “This collaboration exemplifies a sustainable development model, utilising the combined expertise of both nations to ensure the highest standards of quality and efficiency in implementing advanced technological solutions.”

  The digital transformation project will establish an integrated system for health information exchange and storage, linking various health centres across Jordan to a unified digital platform.

  This initiative aims to significantly advance Jordan’s digital transformation efforts and enhance the health sector’s capabilities.

  The project implementation will begin with a comprehensive assessment of the information and communication technology (ICT) infrastructure in Jordan’s healthcare sector.

  This initial phase will evaluate the interoperability of existing health systems and the effectiveness of current data security and compliance measures.

  Photo: ADFD

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12673361/main3951.jpg

  Jennifer Aguinaldo
• 
  Dubai reviews rooftop solar cap

  8 October 2024

  

   

  Dubai is reviewing the current cap or upper limit for the capacity of rooftop solar installations in the emirate, according to industry sources.

  Two sources affiliated with the state utility and regulator said that they cannot confirm whether the review gears towards implementing a higher limit.

  A cap was introduced in 2020, limiting the capacity of rooftop solar installation to 2MW and discounting ground-mounted solar projects. It is understood that this cap was further reduced to 1MW in 2022.

  "There have been rumours, but we will wait until we see something written in the law," notes a third source.

  State utility Dubai Electricity & Water Authority (Dewa) previously said that caps were introduced to safeguard the stability of the emirate's electricity grid.

  In September, the UAE's Ministry of Energy & Infrastructure and Sharjah-headquartered Etihad Water & Electricity (Etihad W&E) announced a rooftop solar photovoltaic (PV) panel scheme in the UAE's northern emirates.

  Under the Distributed Solar System (DSS) programme, Etihad W&E's residential customers, industries and farms will be able to install rooftop solar panels to generate power, which will be sent back to the grid to boost the overall supply of renewable energy in the northern emirates.

  Unlike in other jurisdictions, consumers under the DSS programme will not be able to use the energy generated by their solar panels directly, but they will benefit from reduced energy bills in return for contributing renewable energy to the grid.

  Customers enrolled in the programme will have two meters: one for energy sent to the grid and one for energy used from the grid.

  Each month, the energy sent and used will be compared. If more energy is sent than used, the extra will be credited to their account for use later in the same year.

  The UAE aims to reach net-zero carbon emissions by 2050. The state's updated energy diversification strategy also aims to triple the contribution of renewable energy to the total electricity production mix and invest AED150bn-AED200bn ($40.8bn-$54.5bn) by 2030 to meet the country’s increasing demand for energy.

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  Jennifer Aguinaldo
• 
  Dubai to meet aspiring bidders for $22bn tunnels

  7 October 2024

  

   

  Dubai Municipality will meet with the most senior executives of companies and consortiums that hope to compete for the contracts to develop and operate various packages of the $22bn Dubai Strategic Sewerage Tunnels (DSST) project.

  The so-called consortium matchmaking event is expected to take place in Dubai on 7 October, according to industry sources.

  MEED understands that some of those attending the event have already formed consortiums, while others are still open to negotiations.

  Dubai Municipality expects to receive statements of qualifications from potential investors on 21 October. It also expects to issue the request for proposals for the first package before the end of the year.

  The investor prequalification process for the scheme, which is being procured on a public-private partnership (PPP) basis, comes after the client prequalified engineering, procurement and construction (EPC) contractors that can partner with the developers or investors to bid for the contracts.

  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.

  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 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, 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-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 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 the expansion and upgrade of the Jebel Ali and Warsan sewage treatment plants (STPs).

  The prequalified EPC companies for packages J1, J2 and W include:

  • 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 to bid for package J3 include:

  • 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)

  According to a source close to the project, packages J1 and W will be tendered together as separate contracts first, followed by J2 and J3, with the requests for proposals (RFPs) to be issued sequentially, staggered around six to 12 months apart.

  The packages for 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 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.

  Sustainable 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/12668050/main5608.jpg

  Jennifer Aguinaldo
• 
  ADQ and Modon sign Ras El-Hekma development deals

  7 October 2024

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  Abu Dhabi-based holding company ADQ has appointed Modon Holding as the master developer for its Ras El-Hekma project – a planned new city on Egypt's Mediterranean coast.

  According to the official statement, Modon will act as the master developer for the entire development, which covers more than 170 million square metres (sq m).

  Modon Holding will develop the first phase of the project, which will cover 50 million sq m.

  The remaining 120 million sq m will be developed in partnership with private developers under the supervision of the recently established ADQ subsidiary Ras El-Hekma Urban Development Project Company and Modon Holding.

  The agreement was signed during a ceremony that was attended by President of the UAE, Sheikh Mohamed Bin Zayed Al-Nahyan, and President of Egypt, Abdel Fattah El-Sisi.

  Signed agreements

  Earlier in September, Modon Holding signed several memorandums of understanding (MoUs) with local and international firms to join the development.

  The developer signed a framework agreement with local firm Orascom Construction to serve as the primary contractor for the project's first phase.

  An MoU was also signed with Egyptian firm Elsewedy Electric for the supply of building materials and collaboration on industrial parks, manufacturing, operations and maintenance.

  Another MoU was signed with Abu Dhabi Airports to collaborate on airport strategic planning, design, development and operational support.

  Modon also signed an agreement with Abu Dhabi's Taqa for the development, financing and operation of greenfield utility infrastructure projects, water desalination projects, electricity transmission and distribution projects and wastewater projects at the development.

  An MoU was signed with Spain's Valderrama for the development and operation of golf communities.

  The client also involved e& Egypt to design and implement the overall telecommunications and communications infrastructure at the development

  Modon Holding also signed an agreement with UK-based firm Candy International to explore opportunities in real estate development.

  An MoU was signed with US-based Montage International to develop and manage hotels in Ras El-Hekma.

  Another MoU was signed with French firm Accor and UK-based Ennismore to operate hotels and resorts.

  UAE-based Burjeel Holding will also be involved in developing multi-speciality healthcare facilities within the development.

  Background

  In February, ADQ confirmed that it is the bidder previously referred to by Egyptian authorities as being in negotiations to acquire the development rights for the new city of Ras El-Hekma.

  ADQ acquired rights to develop the project for $24bn and, as part of the deal, is investing a further $11bn in other projects across Egypt in support of economic growth and development. Modon Holding was reported to be a partner in the development.

  Ras El-Hekma is on a spur of land on Egypt’s northern coastline in the Mediterranean Sea, about 240 kilometres west of Alexandria.

  The greenfield development is planned as a combined business and leisure destination, with hotels, leisure facilities, a free zone, a financial district and residential components.

  The master development has been billed as having the potential to attract over $150bn in investment.

  Egypt’s General Authority for Investment & Free Zones (Gafi) confirmed on 8 February that a UAE consortium would be undertaking the master development, which was first proposed in 2020 as a joint plan of UN Habitat and the Egyptian Housing Ministry.

  The deal with ADQ will see the Egyptian government retain a 35% stake in the development. Gafi originally said that state-run entities, including Talaat Moustafa Group, would retain a 20% stake in the project.

  Construction work on the scheme is expected to commence in early 2025.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12667183/main4657.jpg

  Yasir Iqbal