Copasa to launch US$224mn tender in H2 for Paraopeba river basin cleanup

Tuesday, February 22, 2011

Brazil's Minas Gerais state utility Copasa (Bovespa: CSMG3) will launch a 164mn-euro (US$224mn) tender in H2 for work under its Paraopeba river basin cleanup, program coordinator Paulo Fernando Lopes told BNamericas.

"German banking group KfW is providing a 100mn-euro loan for the initiative and Copasa is contributing 63.6mn euros," Lopes said.

As it is being financed by an international institution, the process must be approved by the senate. Legal procedures should be wrapped up by May, after which the bidding process is expected to begin.

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The cleanup program has been divided into four parts, according to Lopes.

The first two involve building collector pipelines and wastewater treatment plants in cities along the banks of the Paraopeba basin, and construction of sludge treatment units at water treatment facilities in Betim and Juatuba.

The remaining two stages involve installing a biogas to energy system for the Betim wastewater treatment facility and another in Ibirité, and the deployment of integrated watershed protection system to promote environmental preservation and awareness in communities along the Paraopeba river.

The program is expected to raise the sewage collection and treatment rate in the Minas Gerais metropolitan region to 90% from 60% over the next four years.