Muharraq SewageTreatment Plant, first for sanitary engineering services privatization

The event was hosted by the Ministries of Works, Finance and the Economic Development Board.

The privatization project to develop a greenfield Sewage Treatment Plant and a sewer conveyance system in Muharraq includes designing, financing, constructing, commissioning, testing, owning, operating and maintaining the plant and sewer system, as well as associated facilities, network extension and modification works.

"This project represents the first tender for private sector investment in the state owned sanitary services sector in Bahrain and forms part of a wider ongoing national Privatization Strategy and Implementation Plan (PSIP), which is currently under execution by the Ministries of Finance, Works, the Economic Development Board and a consultant consortium comprising lead consultant, HSBC Bank Middle East, and supporting entities, Fichtner GmbH and Norton Rose (Middle East) LLP,"

said Mr. Khalifa Ebrahim Al Mansoor, Assistant Undersecretary of Sanitary Engineering at the Ministry of Works.

The new Muharraq Sewage Treatment Plant has been jointly tendered by the Ministries of Works, Finance and the Economic Development Board on a 27-year Build Own and Operate (BOO) contract. The sewer conveyance system will be developed on a Build Own Transfer (BOT) contract, which will allow for future privatization of the Muharraq network. The project is on schedule and land reclamation for the site has been progressing and is on track for completion by March 2010.

"In the sanitary sector the move towards privatizing Sanitary Engineering Services will provide further high quality services to the people of Bahrain and is a reflection of how the Ministry of Works operates in cooperation with society, the community, Government and the private sector through partnerships. The plant will have an initial design capacity of 100,000 m3/day, and the Government has the option to expand the capacity during the BOO term to 160,000 m3/day," added Mr. Al Mansoor.

The first stage of the project has two phases. The first is scheduled to take 30 months and will involve the construction of the sewage treatment plant and a 15 km deep gravity sewer trunk main. This link will enable influent to be fed from an existing wastewater pumping station to the new plant.

When the plant is fully operational phase two will begin and will last for a maximum one year period, during which a series of connection sewers will be built to link existing wastewater pumping stations directly into the sewer trunk main. In addition, a limited local connection network will also feed directly into the plant. In all, 24 pumping stations will be networked through collection pipelines (the 'Wastewater Collection Network'), allowing influent from existing pumping stations to flow directly to the sewer trunk main.

The project is part of efforts to ensure sustained development for the long-term future of the Kingdom and to realizing the nation's aspirations, including achieving a world-class sanitary infrastructure.

The pre-bid conference was held in conjunction with the issuance of a Request for Proposal (RFP) for the privatization project. H.E. Aref Saleh Khamis, Undersecretary at the Ministry of Finance provided the opening address, which was followed by an address by Mr. Al Mansoor.

A presentation on the financial, technical and legal aspects of the project was then provided by the consultant consortium. A Question and Answer session was followed by individual meetings with bidders. The event ended with action points and next steps.

"We are delighted with the enthusiastic response this conference has generated and the interest shown in the project underscores the appetite of the international private developers/investors to invest in the Kingdom of Bahrain," added H.E. Khamis.

The privatization project is also a demonstration of the Ministry of Works' strategic execution against four identified themes which help it contribute to all economic, social and cultural sectors in the Kingdom.

The themes are 'Public Private Partnerships' where the Ministry is engaging private sector capabilities in implementing projects; and as a 'Key Planning Player' where the Ministry occupies a key role in master planning and implementation in accordance with the National Strategy.

The third theme is in ensuring 'Sustainable Quality Services' which the new plant will provide given demographic considerations and urban development particularly in the Muharraq Governorate. The final theme is as a 'Leading Professional Organisation', where the Ministry aims to ensure a highly motivated workforce working within a culture and environment where knowledge sharing and the power of synergy and effort are at its heart.