Abu Dhabi set to privatise sewage system

22 June 2006

Abu Dhabi: Abu Dhabi has formally embarked on the privatisation of its sewage system, issuing request for pre-qualifications (RPQ) from international companies, a top official said yesterday.

Two separate projects will be privatised an operation, maintenance and management services agreement (OM&MS) for the sewerage networks of the whole emirate including Al Ain and a single build-own-operate and transfer (BOOT) project for the major sewage treatment plants (STPs).

Companies must submit initial bids between July 10 and July 17, for the respective projects. Alan Thompson, Managing Director of the Abu Dhabi Sewerage Services Company (ADSSC) told Gulf News the companies will then be shortlisted and the selection process will begin. The network project will transfer to a new, private company, the functions of ADSSC, with the group continuing to own the hard assets of the sewerage network.

ADSSC will second most of its staff to the new company in charge of the operation and maintenance. "The main objectives of the network project are to enhance the technical capacity and efficiency of the sewerage network, introduce best practices in operation and maintenance, improve levels of service, and reduce costs.

Adwea will indirectly hold 60 per cent of the new company and the bidder holding the remaining 40 per cent.

Key facts: In the pipeline
ADSSC has assets worth Dh 9 billion.

Assets include treatment plants, pumping stations and networks.

The staff strength is 1500 including staff from Al Ain.

Adssc took over management of sewerage services from the Municipality on January 1.