Pernambuco, São Paulo waterworks PPPs most crucial

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Tuesday, November 11, 2014

Brazil's two most important public-private partnerships (PPPs) are waterworks concessions in the states of Pernambuco and São Paulo with total investment of more than 6.7bn reais (US$2.68bn), the president of state water utility association Aesbe, Roberto Tavares, told BNamericas.

Of the 15 most important projects in Brazil, two of them involve PPPs with state water utilities, according to a study by consultancy firm KPMG. They are Pernambuco's Compesa and São Paulo's Sabesp, said Tavares.

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The former involves a 4.5bn-real contract for wastewater management in the metropolitan region of Pernambuco state capital Recife. The concession, to last 35 years, was contracted in February 2013 and calls for boosting sewage collection and treatment coverage to 90% from 30% by the 12th year.

Budgeted at 2.21bn reais, the other was awarded in July last year. The 25-year concession involves increasing the water supply near state capital São Paulo by 7%.

Other important waterworks PPPs are under discussion in the southeast states of Minas Gerais and Espírito Santo and the southern state of Rio Grande do Sul, Tavares said.

Tavares is also the CEO of Compesa. For more on his views, visit this page.