Sao Lourenco Water Treatment

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In July 2013, the Brazilian companies Camargo Correa and Andrade Guitierrez were awarded the 25-year contract to build and operate a water treatment facility, located at the metropolitan region of Sao Paulo, state of Sao Paulo. The contract was awarded by the state-owned company Sabesp. The works included building water uptakes, treatment plants and pumping stations, as well as reservoirs with a total capacity of 110Ml. The facility was expected to supply 4700 liters of water per second, benefiting around 1.5 million people. The sponsors were awarded the contract by offering the least counterpart funding from the government. Information on other bidders was not available. The contract was signed in August 2013, and the private sponsor created the special purpose company Sistema Produtor Sao Lourenco S.A. to lead the project. The total investment in the project was estimated at US$ 1112 million (BRL 2.614 billion).The PPP contract envisaged a public funding for the project amounting to US$ 765.8 million (BRL 1.8 billion). Financial closure was achieved in December 2014, when the federal government approved a US$ 1 billion (BRL 2.353 billion) financing package through the state-owned bank Caixa Economica Federal and private banks Itau and BTG Pactual. The remaining of the project cost was equity financed. Construction works commenced in April 2014, and operations were expected to commence in 2017.