Saudi Arabia issues RFQ for sewage outfall pipeline project

9 Aug 2021
Saudi Arabia issues RFQ for sewage outfall pipeline project

The Saudi Water Partnerships Company (SWPC) has issued the request for qualification (RFQ) to companies for the project to develop an outfall pipeline for the Dammam West independent sewage treatment project (ISTP)

The Saudi Water Partnerships Company (SWPC) has issued the request for qualification (RFQ) to companies for the project to develop an outfall pipeline for the Dammam West independent sewage treatment project (ISTP).

SWPC revealed that 26 companies submitted expressions of interest (EOI) in July for the outfall project, which is being developed under an engineering, procurement and construction plus finance (EPC+F) model.

The 26 firms which submitted EOIs are:

  1. Lamar Holding
  2. China Railway Construction (International) Company
  3. VINCI Construction Grands Projects
  4. Passawant Energy and Power GMBH
  5. ARKOIL Technologies Nederland B.V.
  6. Ajlan and Bros Energy Company (Abilitii)
  7. Al Bawani Water and Power (AWP)
  8. Al-Jazea Contracting and Trading Co. 
  9. Alkhorayef Water and Power Technologies Company 
  10. Alkobraish Investment and Construction 
  11. ASK Environmental
  12. BATCO Saudi Construction Company
  13. Civil Works Company
  14. Environment System’s Company
  15. International Water Distribution Company “TAWZEA”
  16. Mowah Company (CJSC)
  17. Mutlaq Al-Ghowairi Company (MGC)
  18. Saudi Arabian Amiantit Company
  19. Thabat Construction Company
  20. AlSharif Group Holding in consortium with SICIM
  21. Elecnor
  22. A. de Obras y Servicios, COPASA
  23. Metito Utilities Limited (MUL)
  24. BESIX – Six Construct
  25. Al Yamama Company
  26. Infralinx Capital Partners

The outfall pipeline is required to convey treated sewage effluent (TSE) from the ISTP to the disposal location in the Arabian Gulf. The approximate length of the pipe will be 29km for the land and marine sections, and will have the capacity to carry up to 350,000 cubic metres a day (cm/d).

SWPC will select a developer or developer consortium to develop, finance, engineer, procure and construct the outfall pipeline following a competitive tendering process. The pipeline will be transferred to the National Water Company (NWC) after construction.

NWC will then assume responsibility for operation and maintenance (O&M). SWPC will sign an outfall pipeline development agreement (OPDA) with the selected developer/ developer consortium, with payments to be made over a term to be determined commencing from the date of the transfer to NWC.

SWPC’s obligations under the OPDA will be supported by a credit support from the Saudi government.

SWPC has appointed Deloitte Financial Advisory Services as lead and financial adviser, Atkins Global as technical adviser and Pinsent Masons as legal adviser.

SWPC awarded a contract to a consortium of Metito Group, Orascom Construction and the local Mowah to develop the Dammam West ISTP in January 2019. The project reached financial close in May 2020.

The Dammam West ISTP will have an initial capacity of 200,000 cm/d with a design that will allow expansion of up to 350,000 cm/d in the future.

The consortium has formed a special-purpose vehicle (SPV) called Dammam West Company for Water to build and operate the plant. The project will be developed under a build-own-operate-transfer (BOOT) model under a 25-year sewage treatment agreement (STA).

SWPC’s obligations under the STA will be guaranteed by a credit support agreement from the Saudi government.

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