Dubai Municipality has officially launched the tender process for the first phase of the ambitious $22 billion Dubai Strategic Sewerage Tunnels (DSST) project. Fahd Al Awadhi, Director of the Drainage System & Services at Dubai Municipality, announced the launch today on LinkedIn, revealing that the tendering process will focus on the initial two packages of the project – Package J1 and Package W.
The request for proposals (RFP) is part of the DSST-TLT Project – Phase I, under the Dubai Municipality’s Sewerage and Recycled Water Projects Department (SRPD). The scope of the tender covers both the J1 and W packages, with the closing date for submissions set for September 30, 2025.
Scope of the DSST-TLT project
The DSST project, which is being procured under a Public-Private Partnership (PPP) scheme, aims to enhance Dubai's sewage and water infrastructure. As part of the first phase, Package J1 will address the northern section of the Jebel Ali tunnels and associated terminal pump stations (TPS), spanning approximately 42 kilometers of tunnels with an additional 10 kilometers of link pipelines. Package W, covering the Warsan area, will involve the construction of 16 kilometers of tunnels, a TPS, and 46 kilometers of link pipelines.
Timeline and bidding teams
MEED reports that several prominent companies have already been prequalified to lead the bidding process. These include:
- Etihad Water & Electricity (UAE)
- Itochu (Japan) & Plenary (Australia)
- Vision Invest (Saudi Arabia)
Sources indicate that the Plenary-Itochu consortium might partner with Samsung C&T (South Korea) and Webuild (Italy), while discussions are ongoing for other potential partnerships within the remaining consortiums. Engineering, procurement, and construction (EPC) contractors are also engaging in talks to finalize their involvement in the project. Companies like Abu Dhabi's National Marine Dredging Company, India’s Afcons Infrastructure, and PowerChina are reportedly in discussions with either Vision Invest or Etihad Water & Electricity.
Investor interest and prequalification
Investor interest in the DSST project has been strong, with more than a dozen firms expressing their desire to qualify as investors or sponsors for the PPP model. Some of the notable investors include:
- Abrdn Investcorp Infrastructure Investments Manager (UK)
- Besix (Belgium)
- China Railway Construction Corporation (China)
- China State Construction Engineering Corporation (China)
- Nesma Company (Saudi Arabia)
- Samsung C&T (South Korea)
- Webuild (Italy)
The prequalification process for these companies has been rigorous, ensuring that only the most capable and experienced entities are considered for the project’s various phases.
Cost and procurement structure
The DSST project is expected to require AED 30 billion ($8 billion) in capital expenditure for the initial phase. Over the full concession period, the total cost is projected to reach AED 80 billion ($22 billion). The project will be implemented through a design, build, finance, operate, and maintain (DBFOM) framework, with concession terms ranging from 25 to 35 years.
The six key packages of the DSST project include:
- J1 and J2: Comprising the Jebel Ali tunnel sections
- W: Covering the Warsan tunnel system
- J3: Additional deep sewerage tunnels, links, and TPS components
The final two packages will focus on upgrading and expanding the Jebel Ali and Warsan sewage treatment plants, with procurement for these segments expected in the future.
