Auction notice issued for USD578 million sanitation concession in Brazil
The State of Amapá has published the auction notice for the concession of water and sewage services for urban areas in all 16 municipalities of Amapá, Brazil. These services are currently provided by the Amapá Water and Sewage Company (CAESA), controlled by the State. One of the key goals of the project is to reduce the rate of water loss, which currently exceeds 70%.
In the state of Amapá, only 34.9% of the population has access to treated water, while just 7.1% has organized sewage collection. The project aims to improve the offer of these services to the population of 750,000 people. The new concessionaire will invest around BRL3 billion (US$577.96 million) during the 35-year concession period. From this investment, 70% will be spent on improving the sewage system and 30% on the water supply.
At least BRL984 million (US$189.57 million) should be invested in the first five years to improve access conditions. The project is expected to provide treated water to 285,000 consumer units and organize sewage collection for 328,000 units.
The auction will take place on September 2, 2021, and will combine lower tariffs with higher grant value. The project was prepared by the National Bank for Economic and Social Development (BNDES).
The auction notice is available here in the Portuguese language.
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