Blumenau kicks off US$190mn sanitation project

Friday, October 28, 2011

Brazilian construction companies Escave Bahia and SulBrasil have kicked off a 320mn-real (US$190mn) sanitation project in Santa Catarina state's Blumenau city, Antonio Carlos Brandão de Alencar, COO of the city's sanitation utility Foz do Brasil, told BNamericas.

"This phase, costing 219mn reais, should end in 2015," de Alencar said.

The work is being financed through federal savings bank Caixa Econômica Federal (CEF).

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Escave, based in Bahia state, will be responsible for installing 520km of sewage pipeline and local firm SulBrasil will build three wastewater treatment plants. A total of 40,000 residents will benefit.

While Foz do Brasil has already made 50mn reais in initial investments, the utility will seek 51mn reais in financing to cover the final phase, according to the executive, who declined to mention possible sources of funding.

Foz do Brasil aims to achieve universal wastewater collection and treatment service in Blumenau by 2027. Sanitation coverage in the city was at 4.87% when the company took over services in April 2010.

The utility is controlled by Brazilian engineering firm Odebrecht.