News / Alagoas' Casal awards US$125 million wastewater PPP

Alagoas' Casal awards US$125 million wastewater PPP

🕔 September 8, 2014
UK politicians urge reconsideration of PPP projects

The Sanitation Company of Alagoas (CASAL), Brazil, has awarded a a sanitation public-private partnership (PPP) project to local consortium Maceió Saneamento.

The winning team is made up GS Inima Brasil, Enorsul Serviços em Saneamento and STE Serviços Técnicos de Engenharia.

The project involves the implementation, operation and maintenance of the sewage system of the the high part of the city of Maceió in Brazil. It includes two sewage treatment plants, 12 pumping stations, 166 km of collector pipelines. The project aims to boost increase collection coverage in the city to 80% from 36%.

The contract period is 30 years. It also involves monitoring sewer system operations and managing overdue accounts during the concession period.

The net present value of the future revenue of the concessionaire will add up around R$290 million (US$125 million). The preffered bidder will be required to invest at least Rs130 million (US$58 million) in the first four years of the PPP. It will also be required to pay Rs1.18 million reais to Companhia Paulista de Desenvolvimento, which carried out the project's feasibility studies.

The tender process had been previously issued but it was canceled on 2 May 2014 in order to make modifications to the tender documents. In mid June we reported that CASAL re-tendered the project.

The project is expected to be completed by 2016.

Maceió is the capital and the largest city of the coastal state Alagoas, Brazil. It is located between the Mundaú Lake and the Atlantic Ocean. Maceio metropolitan area has a total population of 1,156,287 people. The project will benefit 120,000 people in the state capital's Farol, Pitanguinha, Pinheiro, Gruta de Lourdes, Canaã, Ouro Preto, Santo Amaro and Jardim Petrópolis neighborhoods.



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