Dubai Municipality has selected groups for the first two packages of the $22bn Dubai Strategic Sewerage Tunnels (DSST) scheme. This comes ahead of announcing formal contract awards. The public-private partnership (PPP) scheme comprises three packages: J, W and Links. It also covers the construction of two sets of deep tunnels termination at pump stations at Warsan and the Jebel Ali sewage treatment plants (STPs).
Moreover, it includes over 200 kilometers of sewer links. Package W will be awarded to a consortium led by Etihad Water & Electricity (UAE) alongside Tamasuk Holding (Saudi Arabia) and Alkhorayef Water & Power (Saudi Arabia). This package has an estimated capital expenditure cost of about $3bn. The engineering, procurement and construction (EPC) contractor for this package comprises a consortium involving three Chinese companies.
These include China Civil Engineering Construction Corporation (CCECC), Shanghai Tunnel Engineering (STEC) and China Railway 14th Bureau (CRCCC14). France-headquartered Veolia will be the operator for the project. Other major sewage plant projects across the MENA region includes the 800,000 cm/d Al-Haer sewage treatment plant.
The Al-Haer Independent Sewage Treatment Plant (ISTP) in Riyadh, Saudi Arabia, is a SAR 1.8 billion ($479 million) infrastructure project scheduled to begin commercial operations by the end of 2026. It operates under a 25-year Build-Own-Operate-Transfer (BOOT) concession to sustainably treat and reuse wastewater.
Scope of Implementation on Dubai Strategic Sewerage Tunnels Scheme
Other than package W, the Dubai Strategic Sewerage Tunnels scheme also awarded package J. The award was to a consortium led by Vision Invest (Saudi Arabia) alongside Suez Water Company (France). This package has an estimated capital expenditure cost of less than $2bn. According to a source, a group involving China Railway Middle East (CREC) and local firm Detech Contracting will be awarded the EPC contract.
Three groups were bidding for the project, which is being procured by Dubai Municipality’s sewerage and recycled water projects department. The bid packages included equity partners, an appointed operator and a construction contractor. In April, the two winning consortiums were asked to submit best and final offers. The third bidding consortium led by Plenary Group (Australia), alongside Itochu (Japan) and Infrastructure Holding (UAE), did not submit a final offer.
The Phase 2 Links package is the third package being tendered under the DSST scheme. It was tendered in January and has a bid submission deadline of 30 June. At least two groups are preparing to bid for the Links package. According to a source, the first group comprises an EtihadWE-led consortium, alongside China Civil Engineering Construction Corporation (CCECC).
It also includes National Marine Dredging Company (NMDC) and China Railway Construction Corporation 11th Bureau Group (CRCC 11) as EPC contractors. France’s Veolia would act as operator. The three packages are being procured under 30-year design, build, finance, operate and maintain concession models.
Project Factsheet:
- Project Name: Dubai Strategic Sewerage Tunnels (DSST) Scheme
- Location: Dubai, United Arab Emirates
- Estimated Investment Value: $22 Billion
- Project Type: Sewerage tunnels, wastewater infrastructure, pump stations, and sewer network expansion (PPP)
Timeline
- DSST program currently in procurement and contract award phase
- Package J and Package W preferred bidders selected
- Best and final offers submitted in April 2026
- Links Package bid submission deadline set for June 30, 2026
- Long-term concession period: 30 years (DBFOM model
Site & Scale
- More than 200 km of sewer link networks planned
- Also deep sewer tunnel system connecting major districts across Dubai
- Two major tunnel termination facilities at Warsan and Jebel Ali STPs
- Three primary packages: J Package, W Package, and Phase 2 Links Package
Key Contractors/Stakeholders
- Project Owner: Dubai Municipality
- Package W Developer Consortium: Etihad Water & Electricity (UAE), Tamasuk Holding (Saudi Arabia), and Alkhorayef Water & Power (Saudi Arabia)
- Package J Developer Consortium: Vision Invest (Saudi Arabia) and Suez Water Company (France)
- Lead Operator: Veolia (France) for Package W and proposed Links Package operations
Strategic Objectives
- Modernize Dubai’s long-term wastewater infrastructure network
- Improve sewerage capacity to support rapid urban growth
- Enhance operational efficiency of wastewater collection and treatment systems
- Also deliver infrastructure through public-private partnership financing models
Current Status
- Preferred bidders selected for Package J and Package W ahead of formal contract awards
- Package W estimated capital expenditure: approximately $3 billion
- Package J estimated capital expenditure: less than $2 billion
- EPC teams identified for both Package J and Package W packages
- Also phase 2 Links Package remains under tender with multiple consortiums preparing bids
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