Minas Gerais signs Manso river water supply PPP

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Minas Gerais signs Manso river water supply PPP

Minas Gerais signed the Manso river water supply system PPP project with sanitation company Odebrecht Ambiental on 20 Decemeber 2013. The project is supervised by Copasa, the state public water company.

Odebrecht Ambiental submitted the best proposal according to the sources because it asked for the lowest annual payment (discount of 8,15%).

The first annual payment will have an approximate value of R$122 million (US$55 million). In the last year, the concessionaire would receive approximately R$79 million (US$35.6 million).

The state will invest R$694 million (US$294 million) in the project through the 15-year potable water supply agreement.

The Manso river system supplies water to the metropolitan region of Belo Horizonte. The concession involves the installation, operation and maintenance of approximately 15km of pipeline and the expansion of the capacity of water pumping stations and reservoirs during 15 years.

Belo Horizonte is the capital and largest city in the Brazilian state of Minas Gerais, located in the southeastern region of the country.

The Brazilian firm,  Estruturadora Brasileira de Projetos S.A. (EBP), was responsible for the execution of the feasibility studies and is entitled to recover from the winning bidder R$2,700,000.00.

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