Brazil's OAS, SAAB submit bids for Minas Gerais waterworks concession
The Municipality of Pará de Minas, located in Minas Gerais state (Brazil), has received two bids for the concession relative to the water supply and the sanitation services in the city.
Technicals proposals are expected to be opened on 13 October 2014. The two bidders are the following:
- Saneamento Ambiental Águas do Brasil (SAAB), a Rio de Janeiro-based water company, and
- Construtora OAS-led consortium.
Tow other bidders, local engineering company Andrade Gutierrez (AGSA) and waterworks firm Companhia Nacional de Saneamento (Conasa), have submitted proposals. However, they have been disqualified due to a lack of worker documentation.
The concession involves the collection, removal, treatment and disposal of sewage. It also involves the operation and maintenance of production and distribution systems of drinking water. The concession period is 35 years. It is expected that the water supply coverage increases to 100% from 95% and wastewater service coverage increases to 95% from 88%.
The total project investment is estimated at R$230 million (US$92.5 million).
Brazil's Minas Gerais state water utility, COPASA, has been providing those services, but disagreements with the city in recent years made impossible to COPASA to continue rendering these services.
Pará de Minas has a population of about 90,306 inhabitants and is located 86 km west of Belo Horizonte.
There are several water & waste projects in tender stage in Brazil. In mid August Penha, in the state of Santa Catarina, issued a tender process for a water & wastewater concession. Two weeks earlier the city of Sumaré launched a tender process for a concession relative to the water supply and sanitation services and two firms submitted proposals for a concession to manage municipal solid waste in the city of Salto.