Dubai Launches $22 Billion Strategic Sewerage Tunnels Project with Initial Tender Packages

Dubai Launches $22 Billion Strategic Sewerage Tunnels Project with Initial Tender Packages

Dubai Municipality has officially launched the tendering process for the first two contracts of the ambitious $22 billion Dubai Strategic Sewerage Tunnels (DSST) project. This massive infrastructure initiative aims to revolutionize the city's wastewater management system and support its long-term urban development strategy.

First Two Packages Open for Bidding

The municipality has issued requests for proposals (RFPs) for the initial two packages, known as J1 and W. These contracts mark the beginning of the multi-phase project, which will be rolled out over several years. The packages are being tendered separately, with a submission deadline of 30 September.

• Package J1 will involve the construction of tunnels in the Jebel Ali North area, along with terminal pump stations (TPS). The tunnel component will span around 42 kilometers, while associated link sewers will cover approximately 10 kilometers.
• Package W, covering the Warsan area, includes 16 kilometers of tunnels, TPS infrastructure, and an extensive 46-kilometer network of link sewers.

Together, these two packages represent a major step toward implementing the larger DSST framework.

Major Companies in the Race

At least four companies have been prequalified as lead members of potential consortiums eligible to bid for these high-value contracts. These include:

• Etihad Water & Electricity, based in Ajman
• A consortium formed by Japan’s Itochu and Australia’s Plenary Group
• Vision Invest, a major infrastructure player from Saudi Arabia
• Besix, a leading Belgium-based construction company

The Plenary-Itochu team is expected to collaborate with Samsung C&T from South Korea and Webuild from Italy, creating a strong international consortium.

In addition, the engineering, procurement, and construction (EPC) team of National Marine Dredging Company from Abu Dhabi and India’s Afcons Infrastructure is reportedly in final discussions with either the Vision Invest or Etihad Water & Electricity consortiums. There is also speculation that both Etihad and Vision Invest may join forces and submit a unified bid.

Other companies, including Japan’s Marubeni and Saudi Arabia’s AlJomaih Water & Energy, are believed to be evaluating their interest in participating as well.

Project Timeline and Structure

The DSST project will be delivered in multiple stages, with six packages planned under a Public-Private Partnership (PPP) model. Each package will have a concession period ranging between 25 and 35 years.

Following J1 and W, the next contracts—J2 and J3—will be issued sequentially, spaced out by six to twelve months to allow for proper planning and execution.

• Package J2 covers the southern portion of the Jebel Ali tunnels and includes a 16-kilometer tunnel and a 46-kilometer link system.
• Package J3 will be developed under a design, build, and finance model. Unlike the first three packages, which will be operated and maintained by the selected PPP contractors, J3 will be managed by Dubai Municipality upon completion.

The DSST also includes two additional packages aimed at expanding and upgrading the Jebel Ali and Warsan sewage treatment plants. These final components will be procured in the later stages of the project.

A Long-Term Investment in Dubai’s Infrastructure

The total capital expenditure for the DSST project is estimated at AED 30 billion (approximately $8 billion). However, the entire project’s life-cycle cost over its full concession terms could reach a staggering AED 80 billion.

With urban development accelerating across Dubai, the new sewerage system is crucial to supporting future growth while maintaining high standards of public health, hygiene, and environmental sustainability.

Conclusion

The Dubai Strategic Sewerage Tunnels project is set to transform the city’s wastewater infrastructure through innovative engineering and international collaboration. As global consortiums line up for a chance to contribute, this project reinforces Dubai’s commitment to world-class infrastructure and sustainable urban planning.

Stay tuned for more updates as this groundbreaking development progresses.