Meed | UAE PPP activity rises

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

Exclusive from Meed

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29 September 2026
Egypt firm wins Al-Dabaa desalination O&M contract
29 September 2026
Oman awards exploration blocks to state upstream firm
28 September 2026
Saudi Arabia qualifies firms for gas-fired IPPs
28 September 2026

KBR seeks renewable energy contracts in Libya
29 September 2026

The US-headquartered technology and engineering company KBR is seeking renewable energy project contracts in Libya.

Representatives from KBR met with Abdussalam Elansari, chairman of the Renewable Energy Authority of Libya, earlier this month to discuss project opportunities, sources said.

The meeting with Elansari followed KBR’s opening of a new branch in Libya and its securing of several contract awards in the oil and gas sector.

In March, KBR announced that it had been awarded a contract by Zallaf Exploration, Production & Refining of Oil & Gas Company to provide project management and technical services for the South Refinery Project in Libya’s southern city of Ubari.

Under the terms of the contract, KBR will provide contract management, project management and supporting technical services throughout the engineering, procurement and construction (EPC) phases of the project, according to a company statement.

The EPC work is expected to be executed over a 50-month period.

KBR is also carrying out work to re-evaluate the front-end engineering and design (feed) for the project to develop Libya’s J6 North Gialo field.

In January, KBR signed a memorandum of understanding (MoU) with the state-owned Libyan Post, Telecommunications & Information Technology Company.

Under the MoU, KBR agreed to support efforts to develop and improve Libya’s communications infrastructure and enhance fifth-generation (5G) mobile networks in the country.

KBR has previously provided engineering services for major national projects in Libya, but was forced to shut down its office in the country several times amid political instability and security issues.

When the company was known as Brown & Root, it worked on the Great Man-Made River Project in Libya, which is widely recognised as the largest irrigation project in the world.

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Wil Crisp
Sharakat receives bids for Riyadh East sewage treatment plant
29 September 2026
Saudi Arabia’s state water offtaker Sharakat has received bids for the contract to develop the $150m Riyadh East independent sewage treatment plant (ISTP).

Bids were submitted on 28 September.

The plant will have a treatment capacity of 200,000 cubic metres a day (cm/d) in its first phase, expanding to 500,000 cm/d in the second phase.

Five consortiums made offers, including:
- EtihadWE (UAE) / Metito (UAE) / Thrustboring Construction Company (TCC, Saudi Arabia)
- GS Inima (Spain) / Alkhorayef (Saudi Arabia)
- Lamar (Bahrain) / China Harbour Engineering Company (CHEC)
- Miahona (Saudi Arabia) / Marafiq (Saudi Arabia) / Bin Omairah Holding (Saudi Arabia)
- Suez (France) / Civil Works Company (Saudi Arabia) / Alwael (Saudi Arabia)
In May, MEED exclusively reported that groups had begun to form for the project, which will be developed under a build‑own‑operate‑transfer model with a 25‑year concession term.

It is understood that at least two other potential consortiums weighed up making an offer for the contract, but did not bid.

In 2024, Sharakat prequalified 53 companies that could bid for the Riyadh East ISTP, part of seven planned ISTP projects it said it would procure between 2024 and 2026. The request for proposals was issued last October.

WSP is the technical adviser, and KPMG Middle East is the lead and financial adviser.

The targeted commercial operation date for the facility is 2029.
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Mark Dowdall
Egypt firm wins Al-Dabaa desalination O&M contract
29 September 2026

Elsewedy Utilities has been awarded a three-year operation and maintenance (O&M) contract for a seawater desalination plant in Al-Dabaa on Egypt’s north coast.

The plant has a production capacity of 40,000 cubic metres a day (cm/d), and the contract runs for three years.

The award reflects Egypt’s increased focus on involving local private sector companies in operating and maintaining existing seawater desalination plants.

In March, Egypt’s Ministry of Housing, Utilities & Urban Communities directed that a number of existing desalination plants with capacities of more than 10,000 cm/d be offered to specialised local private sector companies for O&M. The plants include facilities in Al-Dabaa, Matrouh and El-Alamein, as well as sites in the Red Sea region and North and South Sinai.

The government said the move is intended to improve operating efficiency, strengthen maintenance systems and make greater use of specialised technical expertise. The contract value was not disclosed.

Elsewedy Utilities is the utilities and facilities management arm of Elsewedy Electric, with activities spanning engineering, procurement and construction, O&M and utility management.

As MEED understands, the contract is separate from the South Med desalination project at Al-Dabaa, which is being developed for the Engineering Authority of the Armed Forces’ Water Management Department.

Elsewedy Electric Infrastructure previously announced it is the main engineering, procurement and construction contractor for the planned 160,000-cubic-metre-a-day seawater reverse-osmosis plant.

Cairo-headquartered Engineering Experience Group also won a design and engineering services contract for the project in June.

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Mark Dowdall
Oman awards exploration blocks to state upstream firm
28 September 2026

Oman’s Ministry of Energy & Minerals (MEMR) has awarded state-owned upstream firm OQ Exploration & Production (OQEP) exploration rights for three hydrocarbon blocks in the sultanate.

OQEP, which is 75% owned by Omani state energy group OQ, has secured rights for Blocks 36, 43A and 66.

Under the agreements, OQEP will conduct geological and geophysical surveys, analysis and modelling, and drill exploratory wells at the three blocks, with the aim of developing recoverable reserves.

Neither MEMR nor OQEP disclosed the blocks’ locations, areas or prospective reserves in their statement.

OQEP’s portfolio comprises 14 upstream oil and gas exploration and production assets in Oman, covering onshore and offshore operations and assets held under service contracts.

Formerly known as Oman Oil Company Exploration & Production, OQEP’s flagship assets include Block 60, which contains the Abu Tubul and Bisat oil fields, and Block 48. The company also holds strategic interests in gas-producing Blocks 9, 10 and 61.

Offshore expansion

OQEP has been expanding its offshore exploration portfolio. In February, the company acquired a 30% participating interest in offshore Block 18, following MEMR’s award of exploration rights to a joint venture between OQEP subsidiary OQ Exploration & Production Al-Batinah Offshore and PC Oman Ventures, a wholly owned subsidiary of Malaysia’s Petronas.

Located off Oman’s northeastern coast, Block 18 covers more than 21,000 square kilometres in the Sea of Oman, with water depths ranging from 50 metres to 3,000 metres. No confirmed discoveries have previously been reported in the block.

ALSO READ: Concession deals boost momentum in Oman mining

Under the concession agreement, Petronas holds a 70% participating interest and operatorship, while OQEP holds the remaining 30%.

OQEP has also expanded its producing portfolio through the acquisition of a 35% interest in onshore Block 27 from Japan's Mitsui E&P Middle East in April. The transaction was valued at RO28.8m ($75m).

Block 27 is operated by US-based Occidental Petroleum, which holds a 65% participating interest under an exploration and production-sharing agreement valid until 2035.

OQEP expects its interest in the block to contribute approximately 3,500 barrels of oil equivalent a day (boe/d) in additional net production this year.

In June, MEMR signed an with OQEP and state-owned Turkiye Petroller AO (TPAO), granting the companies exclusive exploration, appraisal, development and production rights for offshore Block 80.

The block covers approximately 5,737 sq km in the Gulf of Oman, near the Strait of Hormuz and off Musandam governorate. It includes the producing Bukha and West Bukha oil and gas fields.

The agreement stipulates a minimum exploration investment commitment of $90m over an initial eight-year exploration period. The work programme is divided into two phases to evaluate the block’s hydrocarbon potential.

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Indrajit Sen

Saudi Arabia qualifies firms for gas-fired IPPs

28 September 2026

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Principal buyer Saudi Power Procurement Company (SPPC) has qualified 13 companies to bid for the third round of Saudi Arabia’s combined-cycle gas turbine (CCGT) independent power producer (IPP) programme.

The projects will comprise new CCGT plants developed on a build-own-operate basis. Each project will be implemented through a special-purpose project company wholly owned by the successful bidder.

The qualified firms are:

Abu Dhabi National Energy Company [Taqa] (UAE)
Acwa (Saudi Arabia)
Al-Bawani Capital (Saudi Arabia)
Al-Jomaih Energy & Water (Saudi Arabia)
EDF (France)
Etihad Development Company (UAE)
Kepco (South Korea)
Marafiq (Saudi Arabia)
Mitsubishi Power (Japan)
Nesma Renewable Energy (Saudi Arabia)
PowerChina (China)
Saudi Energy (Saudi Arabia)
Sumitomo Corporation (Japan)

Developers submitted statements of qualification for the round on 23 August, as exclusively reported by MEED.

Some have already begun “the process of forming consortiums to bid” for the project, with up to three or four groups likely to make offers.

Also in September, MEED exclusively reported that US-based GE Vernova was close to finalising a turbine reservation agreement with SPPC for the plants.

The new plants will use advanced H-class or J-class gas turbine technology. Each IPP is expected to comprise two or three gas turbine generators, corresponding heat recovery steam generators with duct firing, and one or two steam turbine generators.

The request for qualifications released by SPPC in July did not specify the number, locations or capacities of the projects, which mark the next stage of its CCGT IPP programme.

The first round comprises Taiba 1, Taiba 2, Qassim 1 and Qassim 2, with a combined capacity of 7,200MW.

The second round comprises Rumah 1, Rumah 2, Nairyah 1 and Nairyah 2, also with a combined capacity of 7,200MW.

Saudi Arabia’s Acwa recently said it had begun initial commercial operations at the Taiba 1 and Qassim 1 CCGT power plants.

US/India-based Synergy Consulting is the financial adviser for the procurement; Germany’s Fichtner is the technical adviser; and UK-headquartered Eversheds Sutherland is the legal adviser.

READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF