wastewater utility to be developed inthe UAE, and one of the very few inthe entire MENA region.”

Recycling valuable resourcesTANQIA is in essence an environmentalcompany, whose mission is the collectionand treatment of wastewater to extractcomplying effluent that would provide asubstitute for higher value undergroundand desalinated water in non-potableapplications, and sludge for soil enhance-ment. The company’s shareholders areElwan Group, with 51 per cent; MubadalaDevelopment Company, with 30 per cent;and Overseas Trading Company, with 19per cent. “Elwan Group developed thewastewater treatment system, andsupervised – in collaboration with thecompany’s staff and owner’s engineer –the construction and commissioning ofthe System under the broad guidelinesof its board of directors,” describes MrElwan. “Elwan Group manages TANQIA,and operates and maintains the waste-water system under a 30-year O&Mcontract with SIYANA, a wholly-ownedsubsidiary of Elwan Group.”

The treatment plant has an installedcapacity of 16,000 cubic metres per day,or 5.8 million cubic metres per year, andis based on activated sludge technologyinvolving two paths: a wastewater treat-ment path and a sludge treatment path.“The wastewater treatment path involvesfour stages,” he explains, “commencingwith the removal of solid matter bymechanical processes, including screeningand sedimentation. The secondary treat-ment process targets the dissolved matter– i.e., phosphates, nitrates, ammonia – ina totally biological process, where micro-organisms convert pollutants to biomass.

The biomass is removed from the systemas surplus sludge and treated further inthe sludge treatment process.”The secondary wastewater treatment

stage copies nature, as this natural processtakes place in rivers and other bodies ofwater. “Optimal process conditions for thebiomass in terms of oxygen concentration,pH level and so on, allow for a compactfootprint and high treatment processefficiency,” states Mr Elwan. “The tertiary treatment stage is designed

as a polishing stage, where any remainingtraces of solid matter are removed via fil-tration and chlorination. The fourth treat-‡

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PURIFICATION PIONEERSTANQIA, in the Emirate of Fujairah, is the first privately-held wastewater collection andtreatment utility in the UAE and the Middle East. TANQIA – which means ‘purify’ inArabic – encapsulates in one word the mission of the company. Mr Ibrahim Elwan,Chairman of the Board, speaks to Sarah Pursey about how TANQIA was created as aground-breaking state-of-the-art wastewater utility to provide services for the City ofFujairah and its environs, with ambitious plans to extend its innovative model throughoutthe Emirate and overseas. Written by Gemma Carter.

TANQIA was established as aresponse to the need for an efficient andsustainable wastewater treatment systemfor the concession area of 120 km2 cov-ering the City of Fujairah, the Emirate’scapital, as well as the towns of Qurayyaand Mirbah, and all the population ham-lets between them. The Government of Fujairah had tried

unsuccessfully since 1973 to solicit con-tractor financing for a wastewater collec-tion and treatment system (the ‘System’)for the capital. In 2001, Elwan Group(formerly Infrastructure Capital Group)responded to the government’s requestby submitting a proposal based on Public-Private-Partnership (PPP), with financing

provided under a BOOT (build, own,operate, and transfer) model.Framework for the development of the

System relied on the sharing of risks by thegovernment and TANQIA, with the gov-ernment assuming all sovereign risks, andTANQIA assuming all commercial risks. In 2003 TANQIA was incorporated to

own the wastewater system, and in 2004the government granted TANQIA a 33-year concession for the exclusive rightsto design, finance, construct, own,operate and maintain, and expand theSystem for a Concession Area, encom-passing the city of Fujairah, the towns of Qurayya and Mirbah, and the hamletsbetween them.

Mr Elwan outlines the agreement:“TANQIA has undertaken to generateeffluent and sludge that meet the stan-dards set for each; to meet at all timesduring the concession period thedemand for wastewater services at thelowest commercially viable cost; and tocomply with Fujairah’s promulgatedLaw on Wastewater and UAEEnvironmental Law. The company’sdevelopment and operations reflectElwan Group’s expertise in the privatesector development of major environ-mentally sustainable infrastructureprojects – that is, power generation,water and wastewater treatment.TANQIA is the first privately-owned

EUROASIA INDUSTRY | 161

million), covering the initial system, annualextension of the wastewater collection net-work, and connection of new customers.”When TANQIA started commercial

operations in 2008, its System compriseda treatment capacity of 5.8 m3 million peryear, and covered a network of 350.2kilometres, including 30 pumping sta-tions, providing services to 5,231 proper-ties. Yet TANQIA’s system has expandedsignificantly since the initial system wascompleted in 2008. As of 30th September2014, the collection network had reached418 kilometres and 15,000 properties,providing wastewater services to 100,000inhabitants, representing about 84 per centof the total population in the concessionarea. “The remaining 16 per cent of thepopulation discharge their Septage insoak-aways which are evacuated bytanker trucks and delivered to the plantfor treatment,” adds Mr Elwan. Customersthat are not connected to the system arelocated in the old part of the City ofFujairah, which is to be demolished toconstruct a new commercial and busi-ness centre for the city.”

Specialised supportTANQIA’s achievements are due largelyto the quality of the team involved in thedesign, finance, and construction of itsSystem, and the effectiveness of its staffin managing the large number of spe-cialised contractors, consultants andlenders involved in the project. Theseinclude TKC Construction Consortium,which is a partnership between civilcontractor Bilfinger and its environ-mental engineering affiliate Passavant-Roediger Anlagenbau, both of Germany,for the design and construction of theinitial system and extension of the net-work after the completion of Phases I

& II; Hills & Fort Construction LLC ofDubai, for the annual extension of thenetwork and connection of new proper-ties; and leading independent engi-neering consultancy Fichtner GmbH &Co., as owner’s engineer. Specialisedconsultants include Hyder ConsultingCo., Pöyry GmbH, and Emscher – oneof the largest water and wastewater utilities in Germany.“Our success and strength to keep on

going, when at times it was hard to con-tinue, is due to the support – both moraland financial – that TANQIA, as a regu-lated, privately-managed and operated andmaintained company under a PPP struc-‡

162 | EUROASIA INDUSTRY

ment stage allows the treated effluent tobe reused for irrigation, landscaping orindustrial purposes.“The sludge treatment path reduces

the volume of excess sludge (biomass)generated by the wastewater treatmentprocess to a minimum, and stabilises it byremoving all biodegradable components.Stabilisation takes place by digestion, aprocess that also generates biogas. Thebiogas has a methane content of around70 per cent, and can be combusted torecapture electrical energy and generateheat required for digestion. Finally, thesludge’s water content is reduced to a min-imum by thickening and dewatering, whichmakes the volume of sludge manageablefor further re-use for soil improvement. “We do not see ourselves as a environ-

mental utility that recovers valuableresources in the process of treatingwastewater,” he tells us. “Rather, we seeourselves as a utility that recycles valu-able resources for re-use as a substituteof higher-value products. TANQIA’seffluent complies with stringent stan-dards that stipulate ultraviolet and chlo-rination treatment to allow foragricultural and industrial applications.

Higher quality effluent can be producedby further treating the effluent throughultra-filtration and reverse osmosis.These will result in effluent that is sub-stantially lower in cost than desalinationthat is perfectly useable as a substitutefor the higher-value groundwater anddesalinated water.”

Investment driven by growthTANQIA has undertaken to design,finance and construction of the initialsystem, and to invest annually, using itsinternal sources and customer connec-tion charges, to extend the network toconnect new properties. Mr Elwanelaborates: “The forecast of wastewatergeneration agreed in 2004 anticipatedan average annual rate of populationgrowth for 2005–2015 of around fiveper cent, based on historical growthrates since 1985. However, Fujairah hasexperienced unprecedented growth inits population since 2005 due to accel-erated economic development, whichincreased the net immigration andresulted in an average rate of populationgrowth during the past 10 years of 7.5 per cent.”

The forecast of population growth andwastewater generation in the concessionarea assumes population to continue itsincrease at the rate experienced over thepast 10 years. This will require boostingtreatment capacity by 32,000 m3/day(WWTP- Expansion I), increasing thetreatment capacity from 16,000 m3/dayto 46,000 m3/day. Expansion I will take 30 months to

complete. In the interim, and in order to avoid the production of non-complyingeffluent, a skid-mounted emergency treat-ment plant of 8,000 cubic metres per day(two units, each of 4,000 cubic metresper day) is planned to commence opera-tions in March 2015. When expansion iscompleted, the emergency treatmentplants will be moved to provide waste-water services in the largest two towns in northern Fujairah. “TANQIA has had to increase its

annual investments to extend the net-work connecting new properties, andbring forward investment in increasingthe treatment capacity,” he reports. As of 30th September 2014, the cumulativeinvestment undertaken since 2004amounted to AED 800 million (US$218

leadership experience and expertise atits helm: Mr Elwan was a senior man-ager with The World Bank for 20 years,responsible for infrastructure. Towardsthe end of this lengthy stint, he wasresponsible for spearheading the Bank’sprivate sector initiative.

A quest for energy efficiencyResearch and development is part of Tanqia’s long-term vision, and the company has joined forces with theNetherlands-based Water4All to manu-facture containerised water purificationsystems with low power consumption inthe UAE, for export to the MENA andAfrica regions. Reliance on locally man-ufactured components where possiblewill be maximised to provide potabletreated water at affordable tariffs. TANQIA is also involved in assessing

the effect on biological treatment of high-temperature wastewater, through a jointproject entitled ‘Technology transfer-ori-ented research and development in thewastewater field – validation usingindustrial-scale plants’, which is spon-sored by The German Federal Ministryof Education & Research (BMBF).Mr Elwan reveals more about the

project: “Aeration systems of the biolog-ical water treatment process are the largestpower consuming components. The R&Dproject is assessing the feasibility ofreducing the power consumption of theaeration tanks to minimise power con-sumption in hot climates. One of themajor objectives of this project is toarrive at a computer algorithm thatwould be more exact than the currentlyapplicable design rules for calculating

the necessary oxygen input related towater temperature.”Energy efficiency is also a key concern

of TANQIA, and the energy consumptionby each component of the influent andsludge treatment paths is recordedthroughout the year, with a view to opti-misation. “Substantial energy efficiencyis maintained in the sludge treatment pathby capturing the methane generated bythe process,” he outlines, “and using themethane in burners to maintain a temper-ature of 52 degrees Celsius. This enablesus to generate treated sludge that is freeof pathogens and odours, and can beused as a soil enhancer.”Investment in drying and sanitising the

sludge and packaging it for sale usingdrying by solar energy is currently beingprepared for execution, reveals Mr Elwan.In addition, the concept of installing a solarpower farm is also being prepared with aview to reducing the demand for powerbased on oil and gas. “Indeed, we believein the use of renewable energy, such assolar energy, as a viable means of reducingenergy consumption, and TANQIA liaiseswith Masdar in Abu Dhabi for this pur-pose, which, as an authority in the useof renewable energy, provides us withguidance and support.”

Ready to address demandThere is an absence of unified treatmentstandards across the Middle East, whichcan be a challenge, but TANQIA haschosen to adopt the best treatment stan-dards based on German norms. “Thepricing of wastewater treatment servicesis also a challenge,” notes Mr Elwan,“especially as all inputs are obtained or

bought at market prices, which is why it isimportant to raise awareness of the publicabout the actual treatment costs associatedwith potable water and the importance ofre-using wastewater. TANQIA has initiateda number of awareness campaigns to thatend, which will continue for the foresee-able future.“Looking ahead, our wastewater treat-

ment capacity must be tripled over thecoming three years, in tandem with thegrowth of the city,” he states. “In addition,the effluent distribution system will bedeveloped to distribute treated waste-water to identified demand centres.”TANQIA has accumulated extensive

know-how in all aspects of design,finance, construction, planning and O&Mof wastewater treatment systems underPPP and BOOT arrangements. Indeed,during the past decade the company hasachieved a great deal, including the enlarge-ment of the concession area to reachcities and towns in the northern part ofthe Emirate of Fujairah; and the exten-sion of the wastewater treatment systemto include the new Sheikh MohamedBin Zayed Al Nahyan City in the capitalarea, which requires increasing the treat-ment capacity of the plant for municipalwastewater, and a new plant for treatingindustrial wastewater. These will bedeveloped and constructed alongside a substantial extension of the collectionnetwork – both to be developed, con-structed and operated. “We are alsoexploring opportunities for O&M con-tracts in a number of countries in theMENA region, including Jordan andEgypt, both of which are currently underconsideration,” concludes Mr Elwan. o

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ture, has had from all concerned govern-ments and their agencies in the UAEand abroad,” Mr Elwan asserts. “We arealso grateful to Hermes of Germany,guarantors of our buyer’s credit; ourlenders Royal Bank of Scotland (RBS)and Abu Dhabi Fund for Development(ADFD), as well as consultants, con-tractors, and above all, our customers,who never ceased to express their appre-ciation of the quality of our services. “Here in the UAE, TANQIA’s strength

and success has been the result of severalfactors, first and foremost being theforesight of the Ruler of Fujairah, HHSheikh Hamad Bin Mohammed Al Sharqi,who supported a PPP initiative by a reg-ulated privately-owned company – a modelthat, at the time, had never before beentried in the region. Indeed, we have ben-efited from the continued support of theGovernment of Fujairah throughout theexecution and operation of the plant,despite all constraints.”In addition to this is the unwavering and

generous support that we have receivedfrom the Government of Abu Dhabi,through ADFD, without which TANQIAwould not have been able to cope with the

unprecedented increase in the demandfor services,” he comments. “Moreover, we receive support and

understanding from the Government ofthe UAE and its agencies – in particular,the guidance of HE Sohail Al Mazroui,UAE Minister of Energy; Mr MohamedSaleh, Managing Director and senior man-agement of the Federal Electricity & WaterAuthority (FEWA), whose advice andguidance has been exceptional.”

Training to retain talentBoth TANQIA and SIYANA considermanpower as their most valuable asset, a belief that is underscored by theirrecruitment and employment policies,whose main objective is to recruit andmaintain highly-trained professionalstaff at the lowest technically-feasible size,with market-based competitive compen-sation, and extensive training design to attract and retain them. “We believe in training as a tool to keep

our professionals at the cutting edge,”Mr Elwan affirms, “and we invest intraining courses led by internationallyreputable, specialised firms. These includecourses in accounting, contract drafting

and negotiations, and process design. Theon-the-job training courses are in addi-tion to external short-term courses andspecialised graduate courses in rep-utable institutions.”TANQIA employs 30 members of staff

who administer the agreements and day-to-day activities of the company, as wellas planning, implementation and super-vision of the continuous investment pro-gramme, which is referred to as theLease Cost Plan (LCP) under the CA.The LCP includes both the extension ofthe wastewater collection network andincreasing the installed capacity of the wastewater treatment plant.“Of those 30 employees, 17 are involved

in administering the contracts, managingaccounts and finance, and personnel forboth companies,” he informs us. “Theremaining 13 members of staff are involvedin planning, implementation and supervi-sion of ongoing investment activities thatwill expand TANQIA’s system, and in turnits customer base. SIYANA, on the otherhand, has 60 employees, 29 professionalsand technicians, and 31 skilled and semi skilled workers. ” Certainly, in itsChairman the company has considerable

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