Ashghal awards contract for $1.48bn STW project under Qatar’s first PPP agreement

The consortium consisting of Metito, Al Attiyah Motors & Trading Company and GIC was awarded the contract for the 150,00m3/day STW project

Qatar’s Public Works Authority (Ashghal) has awarded a consortium including Metito, Al Attiyah Motors & Trading Company, and Gulf Investment Corporation (GIC), the contract for the development, design, build, finance, and procurement of a 150,000 m3/day Sewage Treatment Works (STW) project under a Public-Private Partnership (PPP) agreement.

The US $1.48bn project, located in the areas of Al Wakrah and Al Wukair, will be the country’s first sewage treatment PPP project. It was launched with an official signing ceremony held in Qatar; his Excellency Sheikh Khalid bin Khalifa bin Abdulaziz Al Thani, Qatar’s Prime Minister and Minister of Interior graced the signing ceremony for the historic project. His Excellency stated that the initiative of signing the contract of Al Wakrah and Al Wukair STW project is a culmination of the state’s efforts to consolidate the partnership between the public and private sectors, on the one hand, and attract and stimulate local and foreign investments on the other.

This step also reflects the confidence that the state ties to the ability of the private sector to work side-by-side with the government sector to complete significant development projects in various fields, including infrastructure and water treatment projects, he added.

In August 2022, KSA’s NWC said it was planning to roll out 1,429 water sector projects worth $28.4bn.

Commenting on the contract award, Mutaz Ghandour, Chairman and CEO of Metito said: “For decades, we have witnessed Qatar investing heavily to improve economic, social, human, and environmental outcomes for the country and this project is yet another milestone in this progressive journey.”

“Metito has been closely working with its Qatari stakeholders, developing projects since 1987, and being awarded this contract alongside our partners is a great honour and a testament of our commitment to play a leading role in enabling Qatar to achieve its ambitious water agenda”.

The Al Wakrah and Al Wukair STW project will contribute to the achievement of Qatar’s 2030 Vision to streamline water consumption and encourage the use of unconventional water resources.

In May, Kuwait’s Ministry of Public Works appointed a consultant for a sewage plant feasibility study.

The consortium’s scope will involve the design, construction, and delivery of KAHRAMAA facilities, including a primary substation, initial commissioning, performance acceptance testing, and 25 years of operations and maintenance.

Abdul Aziz Al Attiya, Chairman of Al Attiyah Motors & Trading Company, said: “We are the largest shareholder in this consortium, which means providing an effective contribution to the capital, in addition to our decades-long experience working within Qatar. We are proud to be awarded this contract under a public-private partnership for the next 25 years, with the local and global expertise that our consortium has.”

Rami Ghandour, Managing Director Metito, added that Metito and its partners will invest the equity required for the project. Furthermore, Metito will be integrating the latest technologies as it invests close to $1bn, he said.

“Through our experts, access to global resources, and extensive knowledge of the local Qatari requirements and specifications, we are confident we are absolutely the right partner to develop this strategic project,” Ghandour stated.

Meshary Al-Judaimi, Group Head – Principal Investment at GIC added: “In line with its strategy to focus on sectors with high added value to the economies of the region, GIC has chosen the development of utilities and infrastructure projects as one of the most important sectors. There is no doubt that the state of Qatar, through the Public Works Authority, has demonstrated its ability to attract international, regional, and local private enterprises for the development of this important project.”

In April, SWPC said it had achieved financial close for the 90,000-cu/m per day Tabuk-2 independent sewage treatment plant.

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