COPASA signs contract for Divinopolis wastewater PPP

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COPASA signs contract for Divinopolis wastewater PPP

Brazil's Minas Gerais state water utility, COPASA, signed its second public private partnership contract, which included the expansion and the partial operation of the wastewater system of the municipality of Divinópolis.

The contract was signed as an administrative concession.

The consortium "Consórcio FAG" formed by Goetze Lobato Engenharia Ltda. (leader), FB Participações S.A. and Acciona Água Brasil - Tratamento de Água Ltda., won the tender process, which had been published in September 2014 and had a deadline for the submission of proposals in November 2014.

The PPP includes building the Itapecerica and Ermida sewage collection and treatment systems. In phase 2, the Itapecerica system will be expanded. The contract also involves expanding the Pará wastewater system.

The concession will have a period of 26 years. The public-private project represents and investment of 420 million reais (around US$110 million).

The total concession value was estimated at R$482 million (US$248 million in October 2014 US$). The maximum subsidy per month was established at R$1.128 million.

The contract signed by the winning team has finally a total value of R$411.2 million (US$106.3 million in today's US$).

COPASA had carried out a public consultation for the project between July and August 2013. The feasibility studies for the project were carried out by Development Bank of Minas Gerais.

The first PPP contract was signed by COPASA in December 2013 to expand Rio Manso water supply system near state capital Belo Horizonte.

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