The government seeks developers to install technology at a landfill site.
The 25-year concession had been awarded in 2011, with the completion of works originally scheduled for 2014.
The new pipeline will serve a region with some 2mn people.
The government is looking to increase public spending on small-scale irrigation and transport infrastructure projects in regions such as Oruro.
The state water utility will reduce the city's debt by 30%, according to a letter of intent.
German software giant SAP was the winner of a tender held by Latin America's largest water utility.
Construction works have been delayed since last year and aqueduct concessionaire Abengoa could end up losing its contract, according to Mexican media reports.
The state government is using reforestation to guarantee the future water supply of the Valença municipality.
The rural potable water system will demand an investment of US$12mn and the project is advancing thanks to an agreement with cellulose and pulp company Arauco.