Tender for taubate wastewater PPP project canceled

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Tender for taubate wastewater PPP project canceled

Sao Paulo State Audit Court (TCU/SP) has canceled the tender process for the development of a water treatment system through a PPP in Taubate (SP, Brazil).

The decision was made due to the fact that different groups challenged the process because the tender documents were not very complete. They didn't include an investment estimated value and prevented teams of companies from bidding together in association.

Furthermore the PPP project involved too many responsibilities in different sectors.

Litucera Limpeza e Engenharia Ltda.; Realix S/C Ltda.; and EPPO Saneamento Ambiental e Obras Ltda. were the companies not satisfied with the tender documents.

Interested parties had been invited to submit their proposals on or before 2 July 2014.

Total revenues of the waste PPP project were valued at R$1.9 billion (US$859 million). The contract agreement was for a period of 30 years.

Brazil has several waste and wastewater PPP projects in tender stage. Last month the city of Salto, in the state of São Paulo, has launched a tender process for a concession to manage municipal solid waste through a PPP contract. The concession is for a period of 30 years. The PPP contract includes street cleaning, solid waste handling, treatment and disposal, including medical and civil construction waste.

Additionally, the Sanitation Company of Alagoas (CASAL), Brazil, has re-tendered a sanitation public-private partnership (PPP) project, which will consist of the implementation, operation and maintenance of the sewage system of the the high part of the city of Maceió in Brazil. The net present value of the future revenue of the concessionaire will add up around R$290 million (US$125 million) and the term of the contract is 30 years.

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