IGAM prepares tenders for Aracuai river system upgrade

Wednesday, August 7, 2002

Brazil's Minas Gerais state water institute IGAM is preparing bidding rules for procurement and construction contracts to implement water management systems on the Aracuai river to meet local demands for the next 30 years, IGAM said in a statement.

The project will supply 47,000 inhabitants with basic sanitation services in the cities of Aracuai and Carbonita, and includes building reservoirs and expanding the distribution network. Work is expected to begin in November and will be completed within 12 months.

Total investment is approximately US$1mn, and is part of the federal government's US$330mn Proagua water management program. The World Bank provided US$198mn for the project under a loan signed with the environment ministry in 1999. Local municipalities provide matching funds up to 20% of the project cost.

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According to Gazeta Mercantil, Proagua has released some US$15mn to date in Minas Gerais, primarily for projects in the north of the state, including projects in the municipalities of Diamantina and Águas Vermelhas which are 80% complete.