Proposals submitted for Vila Velha sanitation project
Companhia Espírito Santense de Saneamento – CESAN, a state-owned company in Espiritu Santo, has received in a tender process for a sanitation PPP project in the he Municipality of Vila Velha, in the metropolitan area of Grande Vitória (Brazil).
The initiative is as a result of an agreement between the State of Espírito Santo, CESAN and the Municipality of Vila Velha.
The groups that submitted proposals are the following:
- Consórcio Vila Velha Ambiental, formed by Construtora Aterpa S/A, SAM Ambiental S/A and Mauá Participações Estruturadas S/A
- Aegea Saneamento e Participações S/A
- Consórcio RioVivo Brasil, comprised of Rio Vivo Ambiental Ltda. and Cejen Engenharia Ltda..
The first consortium includes part of the shareholders of the first CESAM PPP Project in the Municipality of Serra, celebrated. In 2013, a consortium formed by Construtora Aterpa and Mauá Participações Estruturadas among others submitted the best proposal for the concession for the expansion, operation and maintenance of the sewage system of the city of Serra.
The project has an estimated value of BRL628 million (US$185 million). The estimated value of the private investment is BRL408 million (US$120.4 million) in the first 10 years of the contract and CESAN will partner up with the World Bank to invest the remaining BRL220 (US$64.6 million) in the following five years.
The public-private partnership involves expanding, maintaining, and operating the existing sewer system, as well as the provision of support services for the commercial management of CESAN in the city.. The project also includes the installation of 643km of pipelines and 62,000 sewer system connections. The concession contract will have a period of 30 years.
As we reported in 2014, the Municipality authorized OAS Soluções Ambientais S.A to develop a feasibility study to design a public-private partnership (PPP) for the project. The Request for Expressions of Interest (PMI) was launched on October 3, 2013. Only OAS submitted an expression of interest to develop the feasibility study of the project.
