MegaProject 1066: WTE awarded contract for US$1.8 billion wastewater plant in Kuwait
- WTE Wassertechnik GmbH
- International Financial Advisors (IFA)
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A consortium led by WTE Wassertechnik GmbH Group (WTE) has been awarded the contract to design, finance, build, operate and transfer a wastewater treatment plant with a capacity of 500,000 m3/d in Kuwait. The project has an estimated value of US$1.8 billion.
The contract was awarded by the Kuwait Authority for Partnership Projects (KAPP). Alongside WTE, the consortium includes International Financial Advisors K.S.C.C (IFA), a Kuwaiti firm. The partnership agreement with the Ministry of Public Works stipulates that a Kuwaiti public joint-stock company will be established to build, operate and manage the project for 27.5 years.
The facilities will be located on the site of the existing Umm Al Hayman wastewater treatment plant in Southern Kuwait, with transmission and distribution systems extending to the surrounding catchment areas.
As reported on this platform, the consortium submitted its final proposal in September 2016. In March it was revealed that WTE bid lower than the remaining rival bidder, meaning that this award has been in the pipeline for several months.
The consortium will design, finance, construct, rehabilitate and commission the plant in 2.5 years. The capacity will be able to be expanded in the future depending on flow ability to a final capacity of 700,000 m3/d. The consortium will then operate and maintain the plant for 25 years. After this, ownership will be transferred to the Ministry of Public Works.
This award also entails a 5.5-year design, build and operate (DBO) agreement for the associated wastewater transmission and sewage effluent networks, followed by a 3-year period of operations and maintenance. The Government of Kuwait will finance the capital costs of the assets.
This is the first project to be developed under the PPP law 116 of 2014 in Kuwait.
The government intend that the project contribute significantly to improving the overall state of infrastructure in Kuwait’s water and wastewater sector, and ensuring that the standard of sanitary services in the country adheres to both international and local environmental guidelines and best practices.