Interested parties had to submit their proposals on or before 19 October, but no bidders have decided to participate in the tender process.
The project would have involved the construction, operation and maintenance of the city's potable water supply and sewage collection and treatment systems for a period of 35 year .
The total project investment is estimated at R$589 million (US$153.2 million).
The project started back in 2013 when OAS Soluções Ambientais S.A. proposed the concession for the asset.
Montes Claros is a city located in northern Minas Gerais state. The estimated population is approximately 400,000 inhabitants and the total area of the municipality is 3,470 km², of which 97 km² are urban.