Rio Claro Sewerage System

Active

Prospective

On December 4, 2006, Departamento Autonomo de Agua e Esgoto de Rio Claro (DAAE) awarded the provision of sewerage services of Rio Claro city to Consorcio Rio Claro under a 30 year build-rehabilitated-operate and transfer concession contract. The special purpose vehicle Saneamento de Rio Claro SA was created to operate the concession under a public-private partnership (PPP). The project was awarded through a competitive tender. Bidders received points for their economic offer and technical proposal. Consorcio Rio Claro achieved the highest score in both categories and totaling 94.12 points, followed by Engeform with 90.47 and the OAS/Trana Consortium with 80.53 points. Consorcio Rio Claro was controlled by Odebrecht SA and Lumina SA, Odebrecht’s subsidiary. Consorcio Rio Claro took possession of the assets in January 2007 and on February 16, 2007 the final version of the concession contract was signed between Consorcio Rio Claro the water department of Rio Claro (DAAE). Investment commitments for the length of the concession were estimated to total 140 million Reais (US $72.1 million). The sewerage system included 464 km of drains at contract signing and was to be expanded by 248 km. The city of Rio Claro continued providing water services and administering fees, but fees for sewerage collection and treatment were to be reserved for the concessionaire. In return, Saneamento de Rio Claro SA was to increase the sewerage coverage from approximately 30% of the population to 100% and build eight new waste-water treatment facilities. In the first stage of the construction works set to start in 2009, a total of BRL 80.6 million was to be invested in a wastewater treatment facility, of which BRL 50.3 million was financed by BNDES. Odebrecht was supposed to finance the remaining BRL 30.3 million. The project was expected provide operating synergies with Odebrecht and Suez Amiental’s Limeira Water and Wastewater (project ID 641). Figures converted from Brazilian real using the period rate, market average for 2007 published by the International Monetary Fund.

Water and sewerage

Brazil

High

World Bank Group

Project

Automotive, Water Supply and Storage, Commercial, Power Transmission, Government, Power Generation (CCGT), Waste Processing and Treatment