Blumenau Sewerage System

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In March 2010, the consortium Saneblu was awarded the 35-year concession contract by the city of Blumenay (state of Santa Catarina)to expand, rehabilitate and operate the sewerage system. Saneblu was created as a partnership of Foz do Brasil (a subsidiary of Odebrecht), Odebrecht and Engeform. However, before signing contract with the city, the Saneblu paid R$ 12 million (US $6.9 million) for the investments already made in the existing sewere system. Foz de Blumenau, the project company, committed to invest BRL 303 million (US $168 million) to expand the sewerage collection and treatment from 20% to 70% in the first nine years of teh concession. In terms of treatment, only 6% of the sewerage was treated at the time of contract signing and the Foz de Blumenau was to increase treatment to cover 60% of sewerage by the third year of the contract. The city's population was estimated at 300 thousand inhabitants. The private sponsors took over the operation of the facilities in the end of june 2010. In October 2011, Foz de Blumenau was awarded a US$ million (BRL 219 million) loan from the state-owned bank Caixa Econômica Federal to finance the investment expenditures.