Corsan proposes US$25mn investment plan to renew Rio Pardo concession

- Friday, June 17, 2011

Corsan proposes US$25mn investment plan to renew Rio Pardo concession

Brazil's Rio Grande do Sul state water utility Corsan has proposed a 40.5mn-real (US$25.4mn) investment plan to renew its sanitation concession agreement with the town of Rio Pardo, contract management department head Carina Oliveira da Cunha told BNamericas.

"A total of 33mn reais has been earmarked to improve the municipality's sewerage services and 7.5mn reais to improve water supply services," Oliveira da Cunha said.

The proposal also includes the creation of a shared management municipal fund which will be used to provide resources for basic sanitation and environmental investments.

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As stipulated in the municipality's basic sanitation plan, the company intends to guarantee universal water supply and wastewater collection and treatment within the next 20 years.

Although no deadline has been set for a response to the proposal, an agreement from the city hall is expected soon, according to the executive.

Corsan has guaranteed some 2bn reais in investments from 2011-14 to double wastewater collection coverage in Rio Grande do Sul.

The utility currently serves 204 municipalities throughout Rio Grande do Sul. Around 16% of the state had access to sewerage services in 4Q10, while potable water coverage was at around 97%.