Over US$750mn sanitation PPPs to launch by January

Friday, October 14, 2011

Brazil is due to tender four sanitation PPPs worth a combined 1.3bn reais (US$750mn) between October and January in states Minas Gerais, Espírito Santo and São Paulo, paper Valor Economico reported.

The first tender, to be carried out by Minas Gerais state water utility Copasa, involves 400mn-real expansion work on the Manso water supply system in Belo Horizonte.

The awardee will expand and an existing distribution system that currently supplies 33% of the metropolitan region, improving capacity from 4m3/s to 5m3/s.

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The awardee must also invest in construction of an intake and reservoir on the river, as well as perform maintenance and clean up the area, according to Helcio Tokeshi, director of local consultancy EBP, which structured the PPP.

The tender is slated to launch this month and will be awarded by January 2012.

Espírito Santo state water utility Cesan will launch a PPP tender in November. The 30-year contract will involve collecting and treating wastewater in Serra municipality.

The project will be priced between 700mn-900mn reais, and benefit some 400,000 people.

The remaining two projects are slated to be launched next year in São Paulo. The first involves building a water supply system in the town of Sao Lourenço to supply an additional 4.7m3/s of water to the west of the capital city.

The second entails building a wastewater treatment facility for coastal towns in the north of the state.

The cost of the São Paulo projects has yet to be determined, according to the report.