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
  • Jordan sets market briefing for Amman water PPP

    10 April 2026

    Jordan’s Ministry of Investment, through its Public-Private Partnership Unit (PPPU), has announced a public information session for the South Amman non-revenue water (NRW) reduction PPP project.

    The session will be held on 15 April and is being organised in collaboration with the Ministry of Water & Irrigation and Miyahuna, according to a notice published by the PPPU. 

    The project covers the southern and southeastern areas of Amman and aims to reduce water losses and improve the efficiency of the capital’s distribution network.

    According to the ministry, the scheme will serve about 1.4 million people across 17 zones and forms part of Jordan’s wider National Water Strategy. 

    The planned market briefing is intended to provide early detail on the project’s PPP structure, procurement pathway and performance-based contracting model.

    It is also expected to outline the project’s risk allocation and bankability framework to prospective investors, operators and infrastructure companies.

    The Ministry of Investment opened prequalification for the scheme in March.

    Qualified companies and consortiums have been invited to participate in a two-stage procurement process for the performance-based contract. 

    The project aims to reduce NRW levels to 25% by 2040, while modernising and expanding the existing network using smart technologies and advanced leak detection systems. 

    The original deadline was 23 April. That has since been extended to 12 May.

    Jordan is among the most water-scarce countries in the world, and losses from distribution networks are estimated to account for about 45% of water supplied.

    The country is also advancing its $6bn Aqaba-Amman water desalination and conveyance project that aims to meet about 40% of Jordan’s municipal water demand by 2040.

    As MEED recently reported, the project is nearing financial close. Once complete, it will supply about 300 million cubic metres of potable water a year from the Red Sea to Amman and other regions.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16340931/main.jpg
    Mark Dowdall
  • OQ allows more time for natural gas liquids project proposals

    10 April 2026

     

    Omani state energy conglomerate OQ Group has allowed contractors more time to prepare proposals for a major project to build a natural gas liquids (NGL) facility in the sultanate.

    The planned NGL facility will extract condensates in Saih Nihayda in central Oman and transport those volumes to Duqm, located along the sultanate’s Arabian Sea coastline, for fractionation and export, OQ Group has said.

    OQ Group intends to deliver the project using a front-end engineering and design (feed)-to-engineering, procurement and construction (EPC) competition model.

    The state enterprise issued the main tender for the feed-to-EPC competition “earlier in March”, setting an initial deadline of 8 April for contractors to submit proposals, MEED previously reported. The deadline has now been extended to 6 May, according to sources.

    MEED previously reported that OQ had started the prequalification process for the feed-to-EPC contest for the planned NGL project in November last year, with contractors submitting responses by 15 December.

    The following contractors, among others, are understood to have been invited to participate in the feed-to-EPC contest for OQ’s planned NGL project, sources told MEED:

    • Chiyoda (Japan) / CTCI (Taiwan)
    • G S Engineering & Construction (South Korea)
    • Hyundai Engineering & Construction (South Korea) / KBR (US)
    • JGC Corporation (Japan)
    • Kent (UAE)
    • Petrofac (UK)
    • Saipem (Italy)
    • Samsung E&A (South Korea) / Larsen & Toubro Energy Hydrocarbon (India) / Wood (UAE)
    • Technip Energies (France)
    • Tecnicas Reunidas (Spain)
    • Tecnimont (Italy)

    The scope of work on the project covers the development, verification and integration of feed deliverables for the following facilities and systems:

    • NGL extraction facility – Saih Nihayda:
      • Verification and updating of the existing feed to enable dual-mode operation (ethane recovery and ethane rejection).
      • Identification and implementation of required process, equipment, utilities, and control system modifications.
         
    • NGL Pipeline – Saih Nihayda to Duqm:
      Feed for a new approximately 230km NGL transmission pipeline, including routing, hydraulics, stations, pigging facilities, metering, corrosion protection, leak detection, and safety systems.
       
    • Fractionation unit at Duqm:
      • Feed for a new fractionation facility to process ethane and propane + NGL and recover propane, butane, condensate, and provision for future ethane recovery.
      • Design accommodating licensed or open-art technology and future tie-in to a planned petrochemical project in Duqm.
         
    • Product pipelines, storage and export facilities at Duqm jetty:
      • Feed for product pipelines, cryogenic and atmospheric storage tanks, vapour recovery systems, marine loading arms, and export facilities.
      • Integration with existing port and refinery infrastructure, where feasible.
         
    • Supporting systems and studies:
      Utilities, offsites, flare systems, safety and environmental studies, cost estimates (class 2+10%), project schedules, constructability assessments, and EPC tender documentation.
    Natural gas liquids projects

    Gulf national oil companies have been allocating significant capital expenditure to building or expanding NGL production facilities.

    QatarEnergy, in September last year, awarded the main EPC contract for its project to add a fifth NGL train at its fractionation complex in Qatar’s Mesaieed Industrial City. The aim of the project, which is estimated to be worth $2.5bn, is to build a fifth NGL train (NGL-5) with the capacity to process up to 350 million cubic feet a day of rich associated gas from QatarEnergy’s offshore and onshore oil fields.

    The main EPC contract for the QatarEnergy NGL-5 project was won by a consortium of India’s Larsen & Toubro Energy Hydrocarbons Onshore and Greece-headquartered Consolidated Contractors Group.

    Separately, the gas processing business of Abu Dhabi National Oil Company (Adnoc Gas) has also selected the main contractor for a project to install a fifth NGL fractionation train at its Ruwais gas processing facility in Abu Dhabi.

    The fifth NGL fractionation train will have an output capacity of 22,000 tonnes a day, or about 8 million tonnes a year.

    The Ruwais NGL Train 5 project represents the second phase of Adnoc Gas’ ambitious Rich Gas Development (RGD) programme, and its budget value is estimated to be around $4bn, Peter Van Driel, Adnoc Gas’ chief financial officer, confirmed in February. The company expects to achieve final investment decision on the project within the first quarter of 2026, Van Driel said at the time.

    ALSO READ: PDO awards Oman gas plant expansion project
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16340039/main5958.jpg
    Indrajit Sen
  • Masdar’s move abroad will not be the last

    10 April 2026

    Commentary
    Mark Dowdall
    Power & water editor

    Masdar’s new joint-venture agreement with France’s TotalEnergies will not be the last time we see regional energy investors use strong balance sheets and domestic growth to build larger positions overseas.

    For Masdar in particular, the deal broadens its international exposure at a time when investors are asking questions about the Middle East’s geopolitical risk.

    By combining portfolios, the two companies start with 3GW of operational capacity and another 6GW in advanced development.

    The deal covers nine Asian countries, reflecting a prudent strategy that spreads capital across markets with different risk profiles and growth trajectories.

    In Kazakhstan, which already includes 2.6GW of assets under development, there is clear logic behind this move.

    The country is expected to see a significant increase in renewable generation over the next decade, supported by strong wind resources and the availability of large land areas for utility-scale developments.

    There is also a practical advantage in partnering with TotalEnergies, which already has project delivery experience and an established presence in several of these markets.

    The US-Iran ceasefire announced on 8 April has brought some respite to energy infrastructure stakeholders in the region.

    For investors and developers, however, the long-term uncertainty remains. Until there is clear evidence of regime change, the removal of sanctions or lasting peace in the region, the outlook will be less clear.

    With uncertainty one of the biggest killers of investor confidence, many will now be looking at this agreement and thinking whether they should also follow suit.

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

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16340038/main.jpg
    Mark Dowdall
  • Turkish firm launches Mecca villas project

    10 April 2026

    Register for MEED’s 14-day trial access 

    Turkish real estate investment firm Emlak Konut has announced the launch of Hayat Makkah, its first development in Saudi Arabia.

    The project is part of the National Housing Company’s (NHC) wider Mecca Gate masterplan.

    According to the company, Hayat Makkah will feature 1,014 villas, with home sizes ranging from 150 to 5,000 square metres.

    NHC and Emlak Konut signed an investment agreement worth over SR1bn ($266m) in November last year to develop the project.

    The agreement was signed on the sidelines of the Cityscape Global 2025 event in Riyadh.

    Ertan Keles, chairman of Emlak Konut, said the firm is in talks with stakeholders about launching a second project, while a third development is also being lined up in Jeddah.

    GlobalData expects the Saudi Arabian construction industry to grow by 3.6% in real terms in 2026, supported by an increase in foreign direct investment (FDI) and investments in the housing and manufacturing sectors.

    The residential construction sector is expected to grow by 3.8% in real terms in 2026 and register an average annual growth rate of 4.7% between 2027 and 2030, supported by the country’s aim – under Saudi Vision 2030 – to increase homeownership from 65.4% in 2024 to 70% by 2030, including by building 600,000 homes by 2030.

    According to the General Authority for Statistics, Saudi Arabia attracted a net FDI inflow of SR72.3bn ($19.3bn) in the first nine months of 2025, an increase of 32.7% year-on-year (YoY) compared to the same period in 2024.

    Similarly, the total value of real estate loans from banks grew by 11.5% YoY in 2025, preceded by an annual growth of 13.3% in 2024, according to the Saudi Central Bank (Sama).

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

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16340004/main.png
    Yasir Iqbal
  • Kuwait gives bidders more time for Al-Khairan IWPP

    10 April 2026

     

    Kuwait has extended bidding for the first phase of the Al-Khairan independent water and power producer (IWPP) project.

    The project is being procured by the Kuwait Authority for Partnership Projects (Kapp) and the Ministry of Electricity, Water & Renewable Energy (MEWRE).

    The facility will have a capacity of 1,800MW and 150,000 cubic metres a day of desalinated water. It will be located in Al-Khairan, adjacent to the Al-Zour South thermal plant.

    The new deadline is 30 April. The original deadline was 31 March.

    The main contract was tendered last September. Three consortiums and two individual companies were previously prequalified to participate.

    These include:

    • Abu Dhabi National Energy Company (Taqa) / A H Al-Sagar & Brothers (Saudi Arabia) / Jera (Japan)
    • Acwa (Saudi Arabia) / Gulf Investment Corporation (Kuwait)
    • China Power / Malakoff International (Malaysia) / Abdul Aziz Al-Ajlan Sons (Saudi Arabia)
    • Nebras Power (Qatar)                                                                                                                                        
    • Sumitomo Corporation (Japan)

    The Al-Khairan IWPP project is part of Kuwait’s long-term plan to expand power and water production capacity through public-private partnerships (PPPs).

    The winning bidder will sign a set of PPP agreements covering financing, design, construction, operation and transfer of the project.

    The energy conversion and water purchase agreement is expected to cover a 25-year supply period.

    Kapp extended another deadline recently for a contract to develop zone two of the third phase of the Al-Dibdibah power and Al-Shagaya renewable energy project.

    The PPP authority is procuring the 500MW solar photovoltaic independent power project (IPP) in partnership with the ministry.

    The bid submission deadline was moved to the end of April, a source close to the project told MEED.

    According to the MEWRE, the total generation capacity currently offered under partnership projects has reached 6,100MW, equivalent to about 30% of Kuwait’s existing power capacity.

    The ministry and Kapp are also preparing to tender the main contract for the 3,600MW Nuwaiseeb power and water desalination plant after plans were approved by Kuwait’s Council of Ministers last November.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16339960/main.jpg
    Mark Dowdall