Mota Engil submits highest bid in Portuguese waste privatization

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Mota Engil submits highest bid in Portuguese waste privatization

Portugal's government has received four bids  in the second round of bids from consortia interested in buying Empresa Geral de Fomento (EGF), the state-owned company specialised in solid urban waste collection and treatment.  Final proposals were due on July 31st.

According to local newspaper Diário Económico, the list of bids follows:

  • Portugal's Mota-Engil - €349,9 million,
  • Spain's FCC - €345 million,
  • Belgium's Indaver - €317,5 million
  • DST - €290,3 million.

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.

However, price is just one of the two criteria that the Government will use to evaluate the bids. The Government will use assess the plans for development of the company of each of the bidders and their experience in waste management.

The winning bidder will assume a debt of €200 million of EGF. There is no a set deadline to announce the winning bidder of the privatization process.

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.

 

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