Santa Cruz do Sul to appeal suspension of concession tender

Wednesday, March 2, 2011

The city of Santa Cruz do Sul in Brazil's Rio Grande do Sul state will appeal the state audit court's decision to suspend a tender to concession sanitation services, a city government spokesperson told BNamericas.

"We intend to submit our argument by Friday (Mar 4), which is likely the last day permitted for an appeal," the spokesperson said.

The court suspended the tender on February 28 due to concerns over its legality.

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"We will clarify all points of the tender, showing that it falls within the law, and then plead for the bidding competition to continue," the official added.

At the time of the tender's suspension, qualifying and technical bids had already been opened, and economic bids were due to be opened shortly.

Brazilian conglomerate Queiroz Galvão's subsidiary Aguas Brasil and engineering firm Equipav were the two finalists competing for the 1.2bn-real (US$725mn) concession, which will last 30 years.

State water utility Corsan, the previous concession holder, was disqualified from the process, as was another group led by Odebrecht. Corsan said it would appeal the decision, BNamericas reported previously.