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Publish Date : 09-Feb-2017

Brazilian state Rio Grande do Sul's water utility Corsan is set to release a 1.85bn-real (US$593mn) tender by the end of June.

The tender will be launched to establish a public-private partnership (PPP) for the provision and expansion of sewage collection and treatment services.

A spokesman said the 35-year PPP will help reach universal sewerage coverage in 9 municipalities surrounding state capital Porto Alegre.

As civil works would be completed by the 11th year of the deal, the region should have a 30% coverage rate by 2019. There would be universal coverage by 2028.

The municipalities include Alvorada, Viamao, Gravata, Cachoeirinha, Esteio, Sapucaia do Sul, Canoas, Eldorado do Sul, and Guaba.

Proposals to form the PPP have already been passed by the utility's board of directors. The state government, which is Corsan's main stockholder, the cities involved and Pro-Sinos, a local waterworks group covering the Sinos river basin, are evaluating them currently.

The PPP model, which requires to select a winner based on the lowest price offered, was created by local sanitation company Aegea which received PricewaterhouseCoopers' technical assistance.

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