Dubai Municipality has chosen preferred bidders for the first two packages of its AED80 billion ($22 billion) Dubai Strategic Sewerage Tunnels (DSST) project, according to Zawya.
The DSST project, structured as a public-private partnership, consists of three packages, J, W, and Links, and involves constructing deep sewer tunnels connecting to treatment plants at Warsan and Jebel Ali, along with over 200 kilometers of sewer links.
For Package W, a consortium led by Etihad Water & Electricity, together with Saudi Arabia’s Tamasuk Holding and Alkhorayef Water & Power, has been selected. The package is expected to require about $3 billion in capital expenditure. Its engineering, procurement, and construction (EPC) team includes China Civil Engineering Construction Corporation, Shanghai Tunnel Engineering, and China Railway 14th Bureau Group. France-based Veolia is expected to operate the facility.
Package J has a preferred bidder consortium led by Saudi Arabia’s Vision Invest and France’s Suez Water Company. Estimated costs for this package are under $2 billion. EPC work is expected to be carried out by China State Construction Engineering Corporation and UAE-based DeTech Contracting.
The DSST project was previously divided under the Warsan Strategic Tunnel Scheme and the Jebel Ali Strategic Sewerage Scheme before being restructured into the current J and W packages, which were tendered in November. The $22 billion overall project value includes construction and long-term operational expenses over the concession periods.
The third package, Phase 2 Links, was tendered in January, with bids due by June 30. At least two consortiums are preparing submissions. One consortium is led by Etihad Water & Electricity, with EPC contractors China Civil Engineering Construction Corporation, National Marine Dredging Company, and China Railway Construction Corporation 11th Bureau Group, and Veolia expected as operator. A second group is expected to be led by Plenary Group, with China State Construction Engineering Corporation and DeTech Contracting preparing construction bids.
All three packages are structured under 30-year design, build, finance, operate, and maintain concession agreements.
