EXCLUSIVE: Dubai receives BOT proposals for waste-to-energy project

31 October 2017
Client is considering proceeding with project under a PPP instead of previously planned EPC model

Dubai Municipality has received build-operate-transfer (BOT) proposals from bidders for its planned waste-to-energy project, weeks after receiving proposals for an EPC contract.

MEED reported in September that the client had received fresh commercial bids from three of the original bidders for the waste-to-energy scheme, with a group led by Spain’s Abengoa emerging as the lowest bidder for building the plant under an EPC model.

However, according to sources close to the scheme, the client subsequently asked the three bidders to provide proposals to develop the plant under a BOT structure.

Following the fresh submission of bids in September, Abengoa had replaced China’s Sepco 3 as the lowest bidder for the EPC contract, with the Chinese firm having submitted the lowest bid earlier in the year.

MEED had reported in April that Sepco 3 was the lowest bidder with an original price of AED1.18bn ($322m). However, this was before technical evaluation and the resubmission of commercial proposals. The Abengoa/Elecnor group had been the second-lowest bidder under the initial bid round.

The ranking of bidders after the September bid resubmission, which included engineering, procurement and construction (EPC) and original equipment manufacturer (OEM) components, was:

 

  • Abengoa/Elecnor: AED1.544bn
  • Sepco 3: AED1.549bn
  • Hitachi Zosen (Japan): AED1.639bn

Seven bids had been received during the initial bid round.

The waste-to-energy project is planned to have a minimum capacity of 2,000 tonnes a day (t/d) and produce 60MW. The plant will be located at the waste landfill site in Warsan.

The project is in line with Dubai’s Strategic Plan 2021 and the Dubai Integrated Energy Strategy 2030, both of which include a commitment to protect the environment and improve sustainability in the energy sectors. Dubai Municipality estimates the quantity of municipal solid wastes generated in the emirate in 2014 was 7,000 t/d.

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