Dubai Municipality has launched the tender process for the first phase of the US$22 billion Dubai Strategic Sewerage Tunnels (DSST) project. 

The DSST project is expected to require AED 30 billion (US$ 8 billion) in capital expenditure for the initial phase. Over the full concession period, the total cost is projected to reach AED 80 billion (US$ 22 billion). The project will be implemented through a design, build, finance, operate, and maintain (DBFOM) framework, with concession terms ranging from 25 to 35 years. The six key packages of the DSST project include:

• J1 and J2: Comprising the Jebel Ali tunnel sections
• W: Covering the Warsan tunnel system
• J3: Additional deep sewerage tunnels, links, and TPS components

The final two packages will focus on upgrading and expanding the Jebel Ali and Warsan sewage treatment plants, with procurement for these segments expected in the future. As part of the first phase, Package J1 will address the northern section of the Jebel Ali tunnels and associated terminal pump stations (TPS), spanning approximately 42 km of tunnels with an additional 10 km of link pipelines. Package W, covering the Warsan area, will involve the construction of 16 km of tunnels, a TPS, and 46 km of link pipelines.

Several prominent companies have been prequalified to lead the bidding process, including Etihad Water & Electricity (UAE), a consortium of Itochu (Japan) and Plenary (Australia), and Vision Invest (Saudi Arabia). Potential partnerships are being explored with firms like Samsung C&T (South Korea), Webuild (Italy), National Marine Dredging Company (UAE), Afcons Infrastructure (India), and PowerChina.​ Investor interest is robust, with over a dozen firms expressing intent to qualify as investors or sponsors for the PPP model. Notable investors include Abrdn Investcorp Infrastructure Investments Manager (UK), Besix (Belgium), China Railway Construction Corporation (China), China State Construction Engineering Corporation (China), Nesma Company (Saudi Arabia), Samsung C&T (South Korea), and Webuild (Italy). 

The request for proposals (RFP) is part of the DSST-TLT Project – Phase I, under the Dubai Municipality’s Sewage and Recycled Water Projects Department (SRPD). The scope of the tender covers both the J1 and W packages, with the closing date for submissions set for September 30, 2025.