Vila Velha Water and Sewerage Service

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In November 2016, the Brazilian AEGEA Saneamento e Participacoes (Grupo Equipav) was awarded the 30-year PPP concession contract to expand, rehabilitate and operate the water and sewerage facilities of Vila Velha, located at the state of Espirito Santo. The contract was awarded by the state-owned company Cesan, and the investment was expected to benefit around 600,000 people. Besides Aegea, two other bidders took part in the contest: RioVivo Brasil Consortium (Cejen Engenharia Ltda, 70%; RioVivo Ambiental Ltda, 30%); and Vila Velha Consortium (Aterpa SA, 33,34%; Sam Ambiental SA, 33,33%; Maua Participacoes Estruturas SA, 33,33%). The bidding criteria was the lowest rate. Aegea presented the lowest offer, a value of US$ 0,37/m3 (R$ 1,16/m3), 18,31% below the ceiling set by the state company. The contract was signed in January 2017, and the sponsor took over the operations in July 2017. The special purpose Vila Velha Ambiental was set to lead the project. The total investment in the project was estimated at US$ 215.2 million (BRL 684 million), of which US$ 87.2 million (BRL 277 million) was agreed to be funded by Cesan.