Brazil postpones US$300mn Bahia irrigation concession auction

The Brazilian government once again postponed the auction of the 1.5bn-real (US$300mn) concession to expand irrigation areas in northeast Bahia state.

The auction for Baixio de Irecê was originally expected to be held on February 10, but the government pushed it back to March 15 and the new auction date is now June 1. 

"Due to the originality and complexity of the project, several interested companies requested additional time to study the documents and formulate their proposals. Changing the date will therefore allow for greater competition in the concession auction," the economy ministry said in a statement.

The Baixio de Irecê irrigation perimeter comprises an area of 105,000ha, of which 48,000ha are irrigable, 500km from state capital Salvador in the municipalities of Itaguaçu da Bahia and Xique-Xique. 

Phases 3 to 9 of the irrigation project will be offered to the private sector, corresponding to an area of 51,531ha, of which 31,500ha can be irrigated.

According to state-run São Francisco and Parnaíba valley development company Codevasf, the minimum fee for the auction of the 35-year contract is 82.7mn reais. 

The area produces grains, fruit and vegetables, and the concession is estimated to benefit around 250,000 people in the region.