meed-logo

line1 line2 line3
SIGN IN / REGISTER

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.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12673874/main1756.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Kuwait selects firms for power works at housing projects

    20 October 2026

     

    Kuwait’s Public Authority for Housing Welfare (PAHW) has appointed contractors for works covering the supply and installation of 132kV underground cables at South Sabah Al-Ahmad Residential City.

    The contracts relate to engineering, procurement and construction (EPC) packages for works for 28 main 132/11kV substations across four phases.

    According to sources, Egypt’s Elsewedy Cables has won contracts for phases 1 and 3, while China’s TBEA Shandong Luneng Taishan Cable Company has won contracts for phases 2 and 4 of the development.

    In April, MEED reported that PAHW had received at least five bids for each of the first two packages, with Elsewedy and TBEA offering $44m and $40.5m, respectively.

    The first contract (phase 1) covers seven substations in zones N9, N7 and N5. The second contract (phase 2) covers seven substations in zones N10 and N5.

    PAHW issued two further 132kV underground cable tenders for the South Sabah Al-Ahmad residential development at the end of May, as reported by MEED.

    This included a contract (phase 3) covering the supply, extension and maintenance of 132kV underground cables linked to seven substations serving the N5, N6, N8 and N10 districts. Egytech Cables, a subsidiary of Elsewedy, submitted an offer of $39.95m, the lowest of four bids.

    The other contract (phase 4) covers the supply, extension and maintenance of 132kV underground cables feeding eight main transformer substations serving the N1, N6 and N11 districts. 

    MEED reported in July that TBEA had submitted an offer of $44.06m for the contract.

    South Saad Al-Abdullah 

    Separately, PAHW has appointed contractors for power transmission works at the South Saad Al-Abdullah residential development.

    The local firm Sayed Hamid Behbehani & Sons has won a contract to supply, install and maintain 10 main 132/11kV transformer substations for the development’s third phase. 

    Another local firm, Al-Ahleia Switchgear, has won a contract to supply, install and maintain 10 main 132/11kV transformer substations for the project’s fourth phase. 

    As reported in August, the contractors submitted bids of $104.2m and $103.3m, respectively.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20761431/main.jpg
    Mark Dowdall
  • Taqa moves forward with Mirfa-Liwa scheme

    20 October 2026

     

    Taqa Transmission and Taqa Distribution are advancing a major water transmission and distribution scheme serving Mirfa, Madinat Zayed and Liwa in Abu Dhabi, sources told MEED.

    The project, originally estimated to cost $775m, has been in procurement for several years. According to sources, a request for proposals has been issued, with bids due on 5 January 2027.

    The initial submission deadline was 11 November, before it was extended.

    The project was previously tendered in December 2024, with contractors submitting bids for transmission and distribution packages in January 2025.  As of August, the bids were still under evaluation. It is unclear whether the latest tender represents a revised procurement process for the same scheme.

    The project comprises a water transmission system from Mirfa, alongside distribution networks serving farms and settlements in the western region.

    According to details seen by MEED, the latest scope includes a pumping station at Mirfa with a capacity of 128 million imperial gallons a day, about 125 kilometres of transmission pipelines to Muzairah, with branches to Madinat Zayed and Liwa Summit, and storage tanks at the three locations.

    The distribution network is divided into four geographic clusters covering Liwa East, Liwa West, Madinat Zayed and Seih Al-Kheir. The works include associated pipelines, pumping stations and storage facilities.

    The earlier procurement was structured as an engineering, procurement and construction scheme, divided between transmission and distribution works.

    As MEED understands, the latest tender is being pursued under a design, build and operate model, which extends the contractor’s responsibilities to operating the infrastructure after construction.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20758109/main2934.jpg
    Mark Dowdall
  • Contractors prepare prices for Adnoc Onshore field facilities project

    20 October 2026

     

    Contractors are preparing commercial bids for Adnoc Onshore’s project to build on-plot and off-plot facilities at the Rumaitha and Shanayel fields in Abu Dhabi’s North East Bab oil field cluster.

    The project will enhance and sustain crude output at Rumaitha and Shanayel at 45,000 barrels a day (b/d), supporting Adnoc’s Accelerated Integrated Programme 5 (AiP5) drive to lift capacity to 5 million b/d by 2027.

    Adnoc Onshore issued the main tender for engineering, procurement and construction (EPC) works on 19 June. Contractors submitted technical bids by 5 August, sources told MEED.

    The on-plot works include adding a crude processing train, produced water treatment and reinjection systems, surface water pumps, and multi-stage gas compression and dehydration units. Works also include utilities, safety and control systems, modifications to existing Phase 1 units and 220kV power infrastructure.

    The off-plot scope includes installing and tying in new gas-lifted producer and water-injection wells, as well as building and expanding wellhead clusters. Contractors will also lay crude-gathering, water-injection and gas-export pipelines connecting to the Adnoc Gas network and extend 33kV overhead power lines across the fields.

    The tender follows Adnoc Onshore’s shift in strategy for the wider North East Bab development – comprising the Al-Nouf, Rumaitha and Shanayel fields – after scrapping an earlier engineering, procurement and construction management (EPCm) approach. MEED reported in December that the operator had cancelled an off-plot EPCm contract awarded to China Petroleum Engineering & Construction Corporation (CPECC) in October 2024. Adnoc later cancelled a separate on-plot EPCm tender that it received bids for in the second quarter of 2025.

    In addition to the North East cluster, Adnoc Onshore continues to make progress on EPC works for another similar project to build off-plot facilities at the South East cluster of oil fields in Abu Dhabi, which is also integral to Adnoc Group’s AiP5 campaign.

    The South East cluster comprises the Asab, Mender, Qusahwira, Sahil and Shah fields and accounts for approximately a third of Adnoc Onshore’s oil production capacity.

    MEED previously reported that Adnoc Onshore awarded CPECC the EPC works for the South East off-plot facilities project, with the contract value estimated at around $1.2bn.

    CPECC is also performing EPC works on the South East on-plot facilities project in a consortium with Greece-headquartered Archirodon. Adnoc Onshore awarded an estimated $1.5bn contract for that project to the consortium in December 2024, with EPC works scheduled for completion in 2027.

    ALSO READ: Adnoc Onshore seeks bids for Bu Hasa field EOR project

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20757699/main.jpeg
    Indrajit Sen
  • Lowest bidder emerges for Kuwait Airport Terminal 2 operations

    19 October 2026

     

    Ireland’s DAA International has emerged as the lowest bidder for the contract to operate, manage and maintain the new passenger Terminal 2 (T2) at Kuwait International airport, submitting an offer of KD419m ($1.35bn).

    Official price-opening records released by Kuwait’s Central Agency for Public Tenders on behalf of the Directorate General of Civil Aviation show three international airport operators submitted commercial bids for the tender.

    DAA International’s proposal undercut its nearest rival by about 45%. Turkiye’s TAV Airports Holding submitted the second-lowest offer at KD764.15m ($2.46bn), while South Korea’s Incheon International Airport Corporation bid KD959.48m ($3.1bn).

    All three proposals were marked as approved in the tender committee’s price disclosure.

    The contract entails the operation, management and improvement of training, maintenance and development services across Terminal 2 and its associated aircraft parking aprons.

    The remit also includes corporate management of centralised operation and maintenance across the broader Kuwait International airport model, centralising operational procedures, systems integration and service delivery across the aviation hub.

    Technical documents indicate the winning operator will oversee facility management, terminal operational readiness, passenger processing systems, apron operations and staff development programmes before and after the complex’s commercial launch.

    MEED reported in June 2023 that six airport operators had initially been invited to bid for the Terminal 2 operating concession.

    Terminal 2 is the centrepiece of Kuwait International airport’s multibillion-dollar expansion, aimed at boosting total handling capacity to 25 million passengers a year.

    Turkish contractor Limak Insaat is executing the main terminal building under an estimated $4.34bn contract awarded in 2016.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20747061/main.png
    Yasir Iqbal
  • Dubai tenders Al-Maktoum-Dubai South drainage scheme

    19 October 2026

    Dubai Municipality has invited contractors to submit bids by 5 November for the construction of a stormwater drainage system connecting Al-Maktoum Airport and Dubai South

    The project, designated TF-06-C2, involves approximately 20 kilometres of pipelines with diameters ranging from 400mm to 3,000mm. The works will use deep trenchless construction and conventional open-cut methods. 

    The scheme is one of four projects, for which a project management consultancy (PMC) tender was issued earlier this month.

    The tender for TF-06-S1 Supervision of Stormwater Drainage System Projects – Package 4 was issued on 6 October.

    The consultancy covers the following projects:

    • TF-06-C1: Construction of a stormwater pond connecting Al-Maktoum Airport and Dubai South
    • TF-06-C2: Construction of a stormwater drainage system connecting Al-Maktoum Airport and Dubai South
    • TF-07-C1: Construction of a stormwater drainage system on Sheikh Zayed Bin Hamdan Road connecting developers
    • TF-24-C1: Connecting developers’ areas to the stormwater networks in Dubailand 

    The projects are part of Dubai Municipality’s wider Tasreef programme, intended to increase Dubai’s rainwater drainage capacity by 700% by 2033 and provide capacity for the emirate’s needs for the next 100 years.

    Investment in the UAE water sector has been dominated by stormwater drainage and network resilience schemes this year, as Dubai Municipality advances procurement under its AED30bn ($8.1bn) Tasreef programme.

    TF-07-C1

    As previously reported, contractors are preparing to submit bids on 22 October for the main construction contract for TF-07-C1.

    The project covers more than 100 million square metres between Sheikh Mohammed Bin Zayed Road and Emirates Road, and from Expo Road to Dubailand.

    It will provide stormwater infrastructure and service connections for more than 20 private developers and Al-Yalayis 5, as well as supporting major roads in the Jebel Ali area. The construction scope includes a major gravity drainage system with pipeline diameters of up to 3,000mm.

    TF-24-C1

    Bids for TF-24-C1 were submitted on 1 October, with Nael Construction & Contracting, Al-Nasr Contracting Company and Al-Kharafi & Sons understood to be among the bidders. 

    The project will connect developers’ areas in Dubailand to the stormwater network. It includes 18km of stormwater drainage pipelines with diameters of up to 1,800mm and 3.5km of gravity sewer pipelines with diameters of up to 1,000mm.

    As MEED understands, the main contract tender for TF-06-C1 has yet to be released.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20746611/main.jpg
    Mark Dowdall