US$1bn Ceará sanitation tender draws 7 bids

Seven groups submitted proposals for a 6.20bn-real (US$1.18bn) sewage services PPP contract in Brazil’s Ceará state, a source close to the process and requesting anonymity told BNamericas.

The bids will be opened on September 27. 

The winner must make operational improvements and build sanitary sewage systems, including sewage collection networks, pumping stations, treatment stations, booster lines and household and building connections.

In partnership with state water utility Cagece, the PPP involves works in 24 municipalities divided into two blocks. 

The first block comprises 17 municipalities and capex of 2.68bn reais, while the second block involves 3.54bn reais – 2.54bn reais in state capital Fortaleza alone.

Aegea Saneamento, Iguá Saneamento, a consortium formed by local firms Encalso, Terracom and others, and a consortium comprising GS Inima, Marquise and PB Construções submitted proposals for the first block, the source said. 

Aegea Saneamento, Iguá Saneamento and the GS Inima, Marquise and PB Construções consortium bid for the second block. 

Related documents, such as the auction notice, can be accessed here, but only from Brazil.

Ceará’s PPP is the first big operation this year. Several sanitation PPPs and concessions were auctioned in 2021 after a change in regulation in 2020. Under the new rules, utilities must provide full sanitation services in their operating areas by 2033 and local authorities must show that they have the financial capacity to achieve their sanitation plans.

Rio Grande do Sul also plans to privatize utility Corsan this year, aiming to boost the utility's investment capacity.