Dubai expected to award first package of $6.8bln mega sewerage tunnels project in 2025.

Dubai plans to grant the first contract for its $6.8 billion mega sewerage tunnels project in 2025.

This major initiative, spearheaded by Dubai Municipality, has a budget of 25 billion UAE dirhams and aims to upgrade the existing sewage system into a gravity-driven, energy-efficient network designed for a century of service.

“We have finalized the feasibility study for the first package, and it is currently in the prequalification phase. Our goal is to sign the first package by the end of next year,” stated Ahmad Al-Sabbah, Investment & PPP Expert at Dubai Municipality, during his address at the PPP MENA forum in Dubai .

The Dubai Strategic Sewerage Tunnel (DSST) project will be implemented in three phases and divided into several packages, employing a public-private partnership (PPP) approach over a span of more than seven years.

The involved consortiums will manage the design, construction, financing, operations, and maintenance (DBFOM) of the infrastructure before it is handed back to Dubai Municipality.

US-based Parsons, acting as the technical advisor for the initiative, revealed that the DSST will be delivered in six packages. In mid-2023, Dubai’s Executive Council, led by Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, endorsed the project in partnership with the private sector, with a total investment of AED 80 billion.

The project entails the construction of two deep wastewater tunnels, along with pumping stations and connecting sewers. Upon completion, the new system will replace over 100 existing pump stations throughout Dubai, reducing wastewater treatment expenses, lowering carbon emissions, cutting energy use, and preparing the city for future population growth.

Dubai Municipality has already pre-qualified engineering, procurement, and construction (EPC) firms to compete for four of the six packages, with firms from various countries, including the UAE, China, Spain, South Korea, and others, showing interest. Tribe Infrastructure serves as the project’s financial advisor, while Ashurst, a UK law firm, provides legal support.

Source :Zawya

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