Dubai Municipality’s pipeline of Public-Private Partnership Projects (PPP) exceeds 32 billion UAE dirhams ($8.7 billion) in value, a top official said.

Speaking at the PPP MENA forum in Dubai last week, Ahmad Al-Sabbah, Investment & PPP Expert, Dubai Municipality said the lineup currently comprises 15 projects covering water and sewerage, waste management and public facilities out of which two projects have been delivered.

The largest project in the group is the AED 25 billion ($6.8 billion) Dubai Strategic Sewerage Tunnel (DSST) project, with the first package anticipated to be awarded by the end of 2025, he noted.

Jebel Ali Sewage Treatment Plant – Phase 3 - $408mln

The AED 1.5 billion ($408 million) project aims to increase Jebel Ali Sewage Treatment Plant’s capacity by 375,000 cubic metres per day (m3/day). The Municipality will procure the project on a design, build, finance, operate, maintain, and transfer (DBFOMT) basis.

“The project is currently in the planning stage. We are targeting signing this contract by the end of 2026,” Al-Sabbah said.

He added that the concession period and construction timeline are yet to be finalised.

Organic and sludge waste treatment facility - $191mln

The project, with an estimated investment value of AED 700 million ($191 million), will process organic waste, agricultural and animal waste within the Dubai emirate, and is in line with Dubai Municipality Strategic Plan 2022-2026, Dubai Plan 2030 and landfill closure roadmap.

“It's in the planning stage now, and we are targeting the end of 2025 to sign the contract with the private sector,” said Al-Sabbah.

According to his presentation, while the project’s PPP model is to be confirmed, it will have an operating period of 20 years and construction period of two years.

Hatta sewerage, storm water and recycled water systems - $272mln

The AED1 billion ($272 million) project involves expanding existing sewage treatment plant and network services to include stormwater treatment and water recycling.

This project will be implemented on a Build-Operate-Transfer (BOT) basis with a three-year construction period and 20-year operational period.

Al-Sabbah said the project is currently in the feasibility study stage with contract signing scheduled for 2025.

New engineered landfill for general waste - $136mln

Dubai Municipality is evaluating engineered landfills as alternatives to conventional landfills with the objective of reducing environmental pollution and preventing leachate penetration in the surrounding areas.

According to Al-Sabbah’s presentation, the AED 500 million ($136 million) engineered landfill for general waste is in the feasibility study stage and contract signing is targeted by the end of 2025. The project will have an operating period of 15 years and construction phase lasting three years. However, the PPP model awaits finalisation.

New engineered centre for construction and demolition waste - $626mln

The municipality is also looking at an engineered centre for construction and demolition waste to replace its existing Bayada landfill. The project, valued at AED 2.3 billion ($626 million), is currently in the planning stage. Its PPP model, as well as construction and operation period is yet to be decided, according to Al-Sabbah’s presentation.

Engineered hazardous waste treatment centre - $14mln

The AED 50 million ($14 million) Engineered Hazardous Waste Treatment Center in Jebel Ali is in the implementation stage.

The project involves the construction and operation of an engineered, double-lined hazardous waste landfill for treatment of industrial hazardous waste in environmentally-safe manner.  

“We signed the contract with the private sector [in 2024],” said Al-Sabbah.

The project has been procured under the Design-Build-Operate-Transfer (DBOT) model with a construction period of four years and an operational period of 14 years.

 Recyclable material recovery facility - $94mln

The AED 345 million ($94 million) project will recycle non-inert waste.

“It's in the planning stage, and we are targeting the end of 2025 to sign the contract,” noted Al-Sabbah.

Medical waste incinerator

The AED 500 million ($136 million) medical waste incinerator project, currently in the procurement stage, will be located within the Jebel Ali Hazardous Waste Treatment facility. It will focus on thermal processing of medical, pharmaceutical, and veterinary waste.

The project is being procured under Design, Build, Finance, Operate, and Transfer (DBFOT) model, with a concession period of 24 years, which includes four years for construction.

Al-Sabbah said the initial business case and detailed feasibility study have been completed and bidders pre-qualified. The contract signing is expected to happen this year.

Al Qusais landfill gas treatment facility - $14mln

The AED 50 million ($14 million) project involves the extraction and treatment of landfill gas for power generation.

The official said the project is in the feasibility study stage with contract signing scheduled for 2025.

Although the PPP model has not yet been confirmed, the project is expected to have a construction period of 12 months and an operational period of 14 years.

Dubai RV parks

The public facility project, currently in the planning stage, involves the development and operation of recreational areas equipped with facilities for tourist caravans, food and beverage services, entertainment and family activities.

“This is a small scale project in the planning stage and we are targeting to sign the contract with the private sector by end of 2025,” said Al-Sabbah

His presentation stated that the project will be procured under a BOT framework. While the project’s value is yet to be confirmed, it is expected to have a two-year construction period and a 15-year operational phase.

Indoor halls in public parks

Al-Sabbah stated that the BOT project aims to enhance the visitor experience in public parks by introducing additional recreational facilities and entertainment options, thereby increasing footfall.

“The project is in the planning stage and we are targeting the end of 2025 to sign the contract” he said.

The project value is yet to be confirmed but it is planned to have a construction period of two years and operational period of 15 years.

Development of sales area in Al Warsan nursery

The project aims to redesign and rebuild the sales area of Dubai Municipality’s plant nursery in Warsan, with the goal of enhancing the customer experience, increasing sales volume, and boosting revenues.

“It's in the feasibility stage now and hopefully, by 2025, we will sign the contract,” he said.

The PPP model follows the BOT framework, with a concession period of 11 years, including two years allocated for construction. The project value is yet to be confirmed.

Warsan Waste Management Centre - $1.1bln

The AED 4.2 billion ($1.1 billion) waste-to-energy plant in Warsan is completed, and now operational.

“This year - 2024 - was the first year of operation and we are starting to achieve the KPIs set for this project,” said Al-Sabbah.

Procured under the BOT model, the project had a construction period of four years and will have an operational period of 35 years.  The plant is expected to be formally inaugurated in the coming weeks, according to industry sources.

Solar dryer project - $12mln

The project, delivered two years ago under the BOT model, consists of an open bed sewage sludge drying plant built at an investment of AED 43 million ($12 million). The concession period is 12 years including a two-year construction period.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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