Brazil-based Companhia Espírito Santense de Saneamento – CESAN, has awarded to the sanitation company Aegea the concession contracts involving Vila Velha sanitation and Teresina waterworks PPP projects.

Both projects have a total value of certain BRL2.38 billion (US$700 million).

The Vila Velha sanitation 30-year PPP covers the expansion, operation and maintenance of the existing sewage system in the city. The works include the installation of 643km of collectors and the construction of a treatment plant and pumping stations. 

The project has an estimated value of BRL684 million (US$199 million).

The other group that submitted proposals were the following:

• Consórcio Vila Velha Ambiental, formed by Construtora Aterpa S/A, SAM Ambiental S/A and Mauá Participações Estruturadas S/A
• Consórcio RioVivo Brasil, comprised of Rio Vivo Ambiental Ltda. and Cejen Engenharia Ltda..

On the other hand, the Teresina PPP project which involves potable water supply and sewage collection and treatment services, holds a budget of BRL1.7 billion (US$490 million). The city, currently has 98% potable water coverage and approximately 247,000 households receive piped water. Additionally, the capital has a 18% sewerage service coverage, which represents that about 35,000 homes have sewerage collection services.

According to sources, six companies showed interest in the project, such as Odebrecht Ambiental, Grupo Acciona Aguas do Brasil and India's Three D Management Services PVT, among others.