Brazil readies state waterworks PPPs, concessions

Thursday, January 19, 2017

Brazil will soon be seeking consultants to prepare technical studies for waterworks public-private partnerships (PPP) in 18 states as part of the country's investment partnership program, PPI, Pernambuco state water utility Compesa said in a release.

National development bank BNDES' president Maria Silva Bastos Marques met this week with Compesa president Roberto Tavares, and other waterworks sector executives, to address environmental and legal issues related to upcoming investment plans (pictured).

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This meeting was the first related to waterworks PPPs since PPI was launched in November.

The goal of PPI is to reach universal basic water and sanitation coverage in the states and this could be done through PPPs, concessions, or sub-concessions. In the case of Compesa, it plans to have more than one PPP, Tavares said.

According to Tavares, who is also the president of state water utility association Aesbe, the studies are complex and should take about one year. As such, tenders are expected in 2018.

Besides financing, BNDES will be providing technical support for basic planning. It already published a notice of the first six states interested in the program with one being Pernambuco.