The Municipality of São Bernardo do Campo, in the state of São Paulo has reduced the scope of its public-private partnership contract (PPP) in the solid waste sector. The project had been signed in June 2012.

The object of the concession is solid waste management, urban cleaning services and construction and operation of a waste-to-energy plant. 

The value of the contract was estimated at BRL4.2 billion (US$1.2 billion), under the 30-year agreement.

According to sources, the reduction in the scope of responsibilities of the SPV in charge of the project, SBC Valuation Waste SA (formed by Lara Central Waste Treatment Ltda. and Revita Engenharia SA), is due to the current bad financial situation of the municipality.

The monthly payment was reduced by 21.56%.