Rio de Janeiro city approves bill to privatize service in western district

Wednesday, June 29, 2011

Brazil's Rio de Janeiro city council has approved a bill authorizing the privatization of sanitation services in the state capital's western district, local daily O Globo reported.

Opposition councilwoman Teresa Bergher had asked for a postponement on the final vote, saying the bill fails to stipulate necessary guidelines for the concession. However, the request has been rejected and the bill's final approval is expected in July.

Once the bill is passed, the Rio de Janeiro state government plans to launch a 1.6bn-real tender (US$1.02bn) for sanitation work in the city.

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The plan, being carried out in cooperation with state water and sewerage utility Nova Cedae and the city hall, entails hiring firms to collect and treat wastewater in 21 neighborhoods throughout the city's western area, BNamericas reported previously.

Rio de Janeiro city, through its municipal waterworks organization Rio-Águas Foundation, will oversee the work, which involves quadrupling the current sewerage network through the construction of 19 wastewater treatment plants and 221 pumping stations.

Sewage collection and treatment in the region should reach 40% by 2016 and 90% by 2036.