Rio prepares US$119mn waterworks tenders

Rio de Janeiro state water utility Cedae is preparing three waterworks tenders estimated at 304mn reais (US$119mn) following a cost-reduction order by state audit court TCE.

One tender involves building a water supply system in the Cabuçu neighborhood of Nova Iguaçu city and the other two involve expanding the existing systems in the cities of Nilópolis and Duque de Caxias. All are located in the metropolitan region of state capital Rio de Janeiro known as Baixada Fluminense and have been revised following the court's decision.

The price for the Nova Iguaçu project, a court press release said, has been reduced to 104mn reais from 150mn reais; the Nilópolis project to 144mn reais from 149mn reais; and the Duque de Caxias project to 56mn reais from 57.1mn reais.

Although the changes reduce the amount of public funds needed for the projects by 52mn reais, the initiatives are still on hold as other irregularities identified by the court have not yet been addressed.

Cedae has been notified that it has 30 days to resolve the issues. Once this has been done, tenders can be launched, the release said.