Casal to launch US$82mn potable water PPP

Friday, May 6, 2011

Brazil's Alagoas state water utility Casal will launch a 133mn-real (US$82.4mn) tender on June 15 for a 30-year public-private partnership (PPP) to improve water supply in the Agreste region of the northeastern state.

The project entails building new pipelines and restoring old ones, increasing the potable water supply to Arapiraca in the short term and providing water for 10 nearby towns in the long term, the company said in a release.

Work will be carried out on 95km of pipeline, including the installation of 57.5km of new pipes. The awardee will also install two pumping stations and build a potable water plant with capacity to treat 1,200m3/h, or 1,260m3/h counting its water reuse component.

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The system will produce 1500m3/h, with 1,000m3/h being directed to Arapiraca and 500m3/h being channeled to serve mining company Vale Verde in Craíbas. Once work is complete, the Arapiraca distribution network will have capacity to move 2,250m3/h.

The PPP contract also calls for a reduction in the area's water loss rate from 40% to 25% by 2020, Casal president Alvaro Jose Menezes told BNamericas previously.

Casal supplies 78 municipalities throughout the state with potable water, primarily covering Maceio. The utility also provides wastewater collection service in Maceio, Maragogi and Piranhas.