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Brazilian state to tender US$490mn waterworks PPP

Bnamericas Published: Tuesday, June 21, 2016

The government of Brazil's Piauí state is planning to launch a 1.7bn-real (US$490mn) tender this month for a public-private partnership (PPP) aimed at achieving universal coverage of water and sewerage services in the metropolitan region of state capital Teresina, a state government spokesperson told BNamericas.

The January suspension of the bidding process for the sub-concession was challenged by the state's attorney general in February, asking judge Aderson Nogeira to reconsider his decision as it was made without the judge actually reviewing documents which validated the PPP plan.

The appeal was accepted and the initiative will be put forward as soon as possible. "We are expecting a launch by the end of the week [Jun 25]," the government representative said.

Although the exact investment amount for the PPP has not been stated, the state government claims that 1.7bn reais is needed to achieve universal water and sewerage coverage in the city and 3.9bn reais to reach 100% coverage throughout the state.

Bidding will be based on a canon payment which can be paid off up to 12 months after signing the service order. A minimum down payment of 88mn reais is required upon signing.

Some six companies have shown interest in the PPP, according to the state, although it did not divulge their names. However, among those that participated in the public hearing regarding the project were local waterworks firm Odebrecht Ambiental, Spanish-Brazilian group Grupo Acciona Agua Brasil and India's Three D Management Services PVT.

Teresina sewage treatment plant (CREDIT: Agespisa).

Currently served by state water and sewage company Agespisa, Teresina has 98% potable water and 18% sewerage service coverage. Approximately 247,000 households receive piped water and 35,000 homes have sewerage collection services.

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