Western Zone of Rio de Janeiro Sewerage Services

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The Brazilian company Foz Aguas 5, a partnership of Foz do Brasil and Saneamento Ambiental Aguas do Brasil (SAAB) or Aguas do Brasil group (itself a partnership of the Brazilian construction companies Developer, Queiroz Galvao, Trana Construcoes Ltda and Construtora Cowan S.A.), was awarded the 30-year concession contract to expand, rehabilitate and operate the sewerage facilities of the western zone of the city of Rio de Janeiro (Rio de Janeiro state) in November 2011. The contract was awarded by the municipality's central administration. The population of the concession area was estimated at 2.6 million. Foz Aguas 5 was awarded the contract by offering the highest payment for the concession rights (the offer was of US$ 42.6 million or BRL 84.2 million, 8% above the floor established by the government). Only two other Brazilian companies took part in the contest: Construtora Delta and Equipav. The contract was signed in January 2012, and the private sponsor took over the operations of the sewerage services in May 2012. The private sponsor committed to invest US$ 1367 million (BRL 2700 million) over the life of the project with the aim to treat 90% of the area’s sewerage and to construct 2100 km of collection pipes. At the time the contract was awarded, only 4% of the sewerage in the area was treated.