Rio Manso Sewerage Treatment Plant

Active

In October 2013, the company Odebrecht Ambiental, a wholly-owned subsidiary of the Brazilian group Odebrecht, was awarded the 15-year concession contract to expand, rehabilitate and operate the water treatment facility named Agua Rio Manso (state of Minas Gerais). The 15-year PPP contract was award by the state-owned company Copasa. The sponsor committed to expand the treatment facility from the current 345.6 million of liters per day to 501.12 million of liters per day. Rio Manso was initially established as the main water supplying facility of Belo Horizonte, capital of the state of Minas Gerais (population of million).The company committed to invest US$ 195 million (BRL 450 million) in the expansion of the facility. The sponsor was awarded the contract by offering the lowest payment to deliver the services: the ceiling established by Copasa was US$ 320.9 million or BRL 755.3 million, and Odebrecht's winning bid was 8.15% below this value (or US$ 295 million).Three other companies took part in the contest: a consortium of the Brazilian companies SAAB and Queiroz Galvao; a consortium of the Spanish company Abengoa and the Brazilian companies Pampulha Engenharia and PB Construcoes; and the Brazilian construction company OAS.The contract was signed in December 2013, and the private sponsors took over the operations of the sewerage services in the same month.