Brazilian city to offer US$230mn water and sewage concession

The city hall of Governador Valadares, in Minas Gerais state, published the tender notice for a water and sewage concession.

Governador Valadares has a population of around 280,000 and the concession is expected to generate investments worth 1.16bn reais (US$228mn) during the 30-year contract, according to the notice.

The auction date was not included in the notice and the minimum bidding fee was set at 45.3mn reais. 

Of the investments, 434mn reais will be allocated to water projects, 650mn for sewage services and 80.9mn to the acquisition of systems, equipment and vehicles.

The concessionaire will have to invest 811mn reais during the first 11 years of the contract.  

The sector is offering many opportunities for private firms in big and small cities due to a new law that was approved in mid-2020. The law forces municipalities to provide water and sewage services to all households by 2033. Failure to do so can lead to the loss of access to federal funding.

The notice and other documents can be seen via this link.