Two consortiums vying for US$897mn Campo Grande solid waste management PPP

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Tuesday, August 28, 2012

Mid-western Brazil's Mato Grosso do Sul state capital Campo Grande is evaluating bids from two consortiums for its solid waste management public-private partnership (PPP) tender estimated at a 1.83bn reais (US$897mn), a city hall spokesperson told BNamericas.

One contender is the Campo Grande Solurb consortium which is composed of Mato Grosso based companies Construtora Industrial and LD Construções, local news service MS notícias reported.

The other is the HFMA consortium made up of Heleno & Fonseca Construtécnica, Agrícola e Construtora Monte Azul, and Monte Azul Engenharia, all from São Paulo state.

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"The 25-year contract will be awarded based on the lowest price and the best technical offer. A ceiling price equivalent to an average of 73mn reais/y has been set with lower annual payments accepted in the first years," the spokesperson said.

Technical bids are currently being evaluated and the next step involves the opening of price bids which will take place in September. Depending on whether or not there are appeals, the tender process should be wrapped up between October-December with civil works starting in 2013.

The concession entails the collection, treatment and final disposal of domestic solid waste and that from healthcare facilities, as well as cleaning public parks and roads. It also involves operating the city's Dom Antônio Barbosa I and II landfills and building a new one, to be known as Erêguaçu.

Campo Grande has a population of around 796,200.