Cuiabá tenders US$3.6bn water, sanitation concession

Thursday, November 24, 2011

Mid-western Brazil's Mato Grosso state capital Cuiabá has launched a tender for a 30-year water and sanitation service concession in the city, valued at an estimated 6.63bn reais (US$3.59bn).

The value is based on Cuiabá's municipal sanitation plan, and corresponds to expected revenues for the concession period, which will start in 2012. The city approved a plan to privatize water services in September this year.

The concession will involve work such as building water intakes, domestic water and sewerage connections, installing meters and building sewerage outfalls.

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Interested companies or consortiums should submit offers on December 20 and bids will be opened on December 22, according to information published on the city government website.

Participants must show proof of at least 99.4mn reais in company capital, equivalent to 1.5% of the contract, and attend a technical visit before bidding.

The concession will include a contract extension option.

Cuiabá is currently served by state-owned utility Sanecap, which provides 99% of the population with potable water supply and 38% with sewerage service. About 28% of the collected wastewater is treated.