Waterworks PPP tender to launch shortly in São Paulo

Friday, November 7, 2014

The town of Holambra in Brazil's São Paulo state is preparing a 152mn-real (US$63.3mn) public-private partnership (PPP) for a 30-year waterworks concession, according to tender documents.

The contract calls for 78.7mn reais in sewerage works and 71.8mn reais in water supply works. Services are currently carried out by the town's urban waterworks company Saehol, which will be responsible for regulating the services once the new concessionaire is hired.

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In the first year of the contract, 93.4% water supply coverage, 91.5% sewage collection and 100% treatment of the collected waste water should be reached. Water loss should be 51% or better, according to the documents.

By the ninth year, water supply and sewerage service coverage should reach 100% and water loss should drop to 30%. The concession's annual rate of return is foreseen at 15%.

Currently, a public consultancy phase aimed at addressing doubts and making suggestions is underway. A tender should be launched once details are ironed out.

Companies or consortiums interested in the concession must prove experience in providing basic water and sanitation services for a population of at least 4,900. All bidders must also have at least 15mn reais in capital, the documents show.

Located 120km north of state capital São Paulo, Holambra has a population of some 13,000.