Guarulhos Sewerage Services

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In May 2014, the Brazilian company OAS Solucoes Ambientais, a subsidiary of Grupo OAS, was awarded the 30-year PPP contract to expand, rehabilitate and operate the sewerage facilities of Guarulhos, located at the state of Sao Paulo. The contract was awarded by the municipality, and the investments were expected to benefit around 1,312,197 people. The sponsors were awarded the contract by offering the lowest tariff and the best technical proposal. Besides OAS, two other companies took part in the bidding process: the Brazilian companies Queiroz Galvao and AEGEA (Grupo Equipav). The contract was signed in February 2014, and the private sponsor took over the operations of the sewerage services in May 2015. The special purpose company Sagua - Solucoes Ambientais de Guarulhos S.A. was set to lead the project. The total investment in the project was estimated at US$ 510.5 million (BRL 1.2 billion). The goal established in the contract was to increase the sewerage collection and treatment coverage from the initial rate of 15% to 80% by the end of the concession. Details on the government support to the project were not available.