Mota Engil preferred bidder for EGF sale

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Mota Engil preferred bidder for EGF sale

Suma, a subsidiary of Portuguese construction group Mota-Engil, is the preferred bidder for the re-privatisation of Portguese waste company Empresa General de Fomento (EGF), according to Portuguese financial daily Diário Económico.

The bids assessment was based on economic and technical criteria. Mota-Engil had been the highest economic offer and according to government reports, it was the best technical offer as well.

The preliminary bid report dated Friday was based on eight criteria, and experience in the collection and sorting of municipal solid waste and the fact that the group works with domestic banks tipped the scales in Suma's favour.

The government plans to announce a winning bidder for EGF this month, a spokeswoman for the Energy Ministry, which is running the sale, said last week.

According to local newspaper Diário Económico, the list of bids follows:
  • Portugal's Mota-Engil - Suma - €349,9 million,
  • Spain's FCC - €345 million,
  • Belgium's Indaver - €317,5 million
  • Portugal's Domingos da Silva Teixeira (DST) - €290,3 million.

Belgian group Indaver was disqualified as its proposal was non-binding.

The consortium formed by Brazilian companies Odebrecht Ambiental and Solví; and the consortium formed by EGEO and Antin Infrastructure Partners rejected to submit bids due the Government's rejection to delay the submission of offers. Beijing Capital Group did not attend the meetings with the Government.

The winning bidder will assume a debt of €200 million of EGF.

Consultancy firm Roland Berger had initially valued EGF at between €140 million and €200 million.

Portugal's government approved the privatization of EGF in January as part of an asset sale programme to meet the terms of the EU-IMF bailout

EGF operates in the integrated management of municipal solid waste and has 11 municipal systems of treatment and recovery of solid waste involving a total of 174 municipalities, accounting for over 60 percent of the Portuguese population.

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