Brazil seeks new contractor to complete US$2.6bn river transposition

Wednesday, October 19, 2016

Brazil's federal government is seeking a new engineering firm to complete work halted by local construction company Mendes Júnior on the multi-billion dollar São Francisco river transposition project (pictured), according to a release from the national integration ministry.

The company has pulled out of the project due to problems in obtaining credit, due to the country's economic recession.

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After an evaluation by federal audit court TCU, it decided to launch a tender to wrap up works by way of Brazil's differentiated contracting system RDC, according to the release.

Under the model, tender budgets are not disclosed and contracts are signed in one step, hiring the same contractor to carry out basic plans and civil works.

Starting October 31, interested companies may visit the work site where Mendes Júnior halted construction on a 140km stretch of a channel on the northern part of the project, which runs from Cabrobó in Pernambuco state to the Jati municipal reservoir in Ceará state.

A tender is expected to take place in November, the ministry stated.

diagram showing of north (norte) axis and east (leste) axis (CREDIT: Codevasf).

The project, which has an overall budget of some 8.4bn reais (US$2.64bn), is aimed at distributing water from the river to dry areas of Brazil's northeast. It is approximately 90.5% complete.

Once teh project is finished, it will ensure steady water supply for some 12mn people located in 390 cities and towns throughout Pernambuco, Ceará, Paraíba and Rio Grande do Norte states. A part of the river will also be apt for transportation.

São Francisco river transposition project (CREDIT: AFP).