Gulf Construction Online - $400m Nakheel job for Palm Water

UAE Focus

$400m Nakheel job for Palm Water

01 November 2006

Palm Water, a company-owned by Istithmar, today said it had been awarded an $400 million contract by Nakheel to design, build, own and operate (DBOO) a sewage treatment plant as well as sewage and irrigation networks that will cater to a number of high-profile property development in Dubai.

The award comes close on the heels of a Dh1 billion contract recently won by Palm Water for setting up a similar project for Nakheel at International City, Dubai.
The new sewage treatment plant (STP) will serve Dubai’s premier golf developments including Jumeirah Golf Estates, being constructed by Istithmar Leisure, an arm of Istithmar that invests in strategic leisure projects.
Planned near Jumeirah Golf Estates, the new STP will have a capacity to treat about 220,000 cu m of sewage each day. As part of the award, Palm Water will be granted a 30-year concession to provide both sewage and irrigation services on behalf of Nakheel. The STP will serve property developments including Jumeirah Lake Towers, Dubai Multi Commodities Centre, Jumeirah Islands, Jumeirah Park and Jumeirah Village.
The plant will be built in phases, with the first phase expected to go on stream by April 2008. Until then, sewage from these developments will be treated at the nearby Gardens STP. The Jumeirah Golf Estates STP will reach full capacity by 2010.
Yousuf Kazim, chairman of Palm Water, said: “When fully operational, this STP will be one of the world’s largest Membrane Bio Reactor (MBR) plant. Palm Water is evolving both the experience as well as the expertise in the execution of projects of this magnitude.”
The scope of the contract awarded to Palm Water covers designing, supplying, constructing, owning, operating and maintaining the STP, as well as owning, operating and maintaining the pumping stations and tanks. Networks and collection systems being developed by others at the various developments will be purchased by Palm Water when completed and maintained by the firm during the 30-year concession period.
International companies are expected to be involved in the design and construction of the STP. A proposal is expected to be issued to pre-qualified bidders by the end of the year. The contract for the design and construction is expected to be awarded early in 2007.