Privatisation of ADSSC and development of Sewerage Treatment Plant on track

ABU DHABI — There has been lot of interest shown by the companies and consortiums for the privatisation of Abu Dhabi Sewerage Services Company (ADSSC) and for the development of multi-million dirham Sewerage Treatment Plant (STP) in Al Saad area.

By Haseeb Haider

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Published: Fri 14 Jul 2006, 11:56 AM

Last updated: Sat 4 Apr 2015, 3:09 PM

Following its successful track-record in the privatisation of the water and power sector, ADWEA had last month issued Request for Application-Pre Qualification (RFQ) to promote private sector participation in the wastewater collection, treatment and disposal services in the Emirate of Abu Dhabi by putting up Abu Dhabi Sewerage Services Company (ADSSC) for sell-off.

ADSSC was created last year to take over from the municipalities the wastewater collection, treatment and disposal services. Earlier, in March this year ADSSC obtained a license from the Regulation and Supervision Bureau.

ADSSC is responsible for the collection, treatment and disposal of wastewater as well as the bulk delivery to the municipalities of treated effluent for irrigation purposes.

Two separate projects have been identified for the private sector participation: A single Operation, Maintenance and management Agreement (OM&MS) for the sewerage networks of the whole Emirate, including Abu Dhabi, AL Ain and the remote areas.

A single Build Own Operate and Transfer (BOOT) project for the major STPs of the emirate. The acquisition of the existing Mafraq STP with a current capacity of 340,000 cubic metre per day; its expansion and additional capacity of 200,000 cubic metres per day alongwith with its operation and maintenance.

In Al Ain the project includes acquisition of existing Zakher STP with a current capacity of 54,000 cubic metre per day, its operations and maintenance and construction and operation of a new 65000 cubic metre per day sewerage treatment plants with a capacity of 65000 cubic metres per day.

The main objectives of the BOOT project are the capacity expansion, rehabilitation, management, operation and maintenance of the STPs using international best practices. The BOOT project will be awarded to a single successful bidder under two-25-year Sewerage Treatment Agreement.

The structure of the BOOT project will closely resemble the approach used successfully in the past with respect to the independent Water and Power produces privatisation scheme. ADEWA will indirectly hold 60 per cent of SPV and the successful bidder the remaining 40 per cent.

The Network project will transfer to a new, private company with ADSSC continuing to own the physical assets of the sewerage network. ADSSC will second most of its staff to the new company in charge of the operation and maintenance of its sewerage network and of the provision of management services, under a ten years contract.

The main objectives of the Network Project are to enhance the technical capacity and efficiency of the sewerage network; introduce best practices in its operation and maintenance; improve levels of service to customers; reduce costs and enhance transparency and accountability.

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