Odebrecht frontrunner for São Paulo waterworks PPP

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Thursday, November 20, 2014

Brazil's Odebrecht group, through subsidiary Odebrecht Ambiental, submitted the best offer for a 350mn-real (US$136mn) waterworks concession in Sumaré city in São Paulo state, according to a local government release.

The tender for the 30-year public-private partnership (PPP) was launched by municipal water and sanitation department DAE in August. The winner will be the company offering the largest canon payment to the city.

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Odebrecht Ambiental submitted a bid worth 91mn reais, some 13.8% above the minimum of 80mn reais that had been set. Aegea Saneamento e Participações bid 87mn reais, the release said.

As the tender requires a waiting period to allow for possible appeals, the company will announce the winner on November 25. If no appeals are filed, DAE will hand over the project to Odebrecht within 90 days of signing the contract.

Sumaré has a population of 236,358 and is located 115km northwest of state capital São Paulo, near the city of Campinas.

PPP DETAILS

The concession involves preparing basic plans and technical studies, as well as carrying out civil works to upgrade the city's existing water and wastewater systems. Of the total budget, 160mn reais will be spent on the city's water supply system, 170mn reais on its sewerage system and 20mn reais will go towards operation and management of the systems.