Foz do Atlantico

active

In January 2013, the Brazilian companies Foz do Brasil (80%), a subsidiary of Odebrecht Group, and Lidermac Construcoes (20%) were awarded the 35-year concession contract to expand, rehabilitate and operate the sewerage facilities of the metropolitan region of Recife and Goiana located at the state of Pernambuco (15 municipalities in total). The PPP contract was awarded by the state-owned company Compesa, and the investments were expected to benefit around 3.7 million people. The sponsors were awarded the contract by offering the lowest payment to be received to perform the services (Compesa established the ceiling of 90% of the revenues with the collected sewerage fees; the winning bid was 86.5%). Only another bidder took part in the bidding process: the consortium of the Brazilian company OAS and the Spanish company AGBAR. The contract was signed in February 2013, and the private sponsor took over the operations of the sewerage services in July 2013. The special purpose company Foz do Atlantico S.A. was set to lead the project. The total investment in the project was estimated at US$ 1911.8 million (BRL 4.5 billion).The PPP contract envisaged a public funding for the project amounting to US$ 478 million (BRL 1.125 billion). In February 2014, the state-owned bank BNB approved a US$ 176.8 million (BRL 415.6 million) loan with funding from Sudene to the project.