Public-private finance secures universal sanitation in southeastern Brazil

Two large sewage collection and treatment contracts, won under auction, are set to provide universal sanitation to 43 municipalities across the southeastern Brazilian state of Espirito Santo.

 

Two lots of sanitation awarded

The contracts were divided into two lots for auction purposes, with a total investment value of €1 billion. Lot A was awarded to GS Inima Consortium with a 25-year contract to provide 35 municipalities in the state with sanitation and water reuse solutions.

The overall investment for this lot totals approximately €765 million, with the project scope including the construction of treatment plants, stations, and networks. Once completed, the work is expected to provide more than 90 per cent of the population, including the state capital of Vitoria.

Lot B was awarded to Spanish sustainable solutions provider Acciona and covers eight municipalities with investments of approximately €335 million.

It represents the largest Public-Private Partnership (PPP) ever implemented in the state of Espírito Santo.

 

Investing in the future health of sanitation 

The lots were awarded on behalf of Cesan, the Espírito Santo Sanitation Company, in which the state government is the majority shareholder. Cesan’s core activity is to collect, treat and distribute water, as well as to collect and treat sanitary sewage.

State governor, Renato Casagrande, told local media that this was an historic moment for Espírito Santo: “The two lots of sanitation that were auctioned had an extraordinary result and creates the certainty that by 2033 we will have universal sanitation in the municipalities managed by Cesan.”

He added that problems with sanitation were an ongoing issue in Brazil and that the investments being made would help to protect the environment as well as the health of the population.

Munir Abud, president of Cesan, also hailed the auction as an historic moment: “The auction consolidates a new cycle of investments in sanitation in Espírito Santo, with direct gains for public health, the environment and the economic development of Espírito Santo.”

He added: “We are ensuring modern infrastructure, operational efficiency and sanitary sewage coverage in the municipalities served by Cesan, through a solid partnership with the private sector.”

 

Significant structural improvements

In addition to expanding service coverage, the overall project will involve the construction of 39 sewage treatment plants, 219 sewage pumping stations and the implementation of 1,200 km of collection networks. In total, 371,000 residents of the state will have been included in the sanitary sewage system by 2033, promoting significant structural improvements across all municipalities.

GS Inima’s Brazilian division has already undertaken work in collaboration with Cesan, including the state’s first sub-concession for water reuse. The company’s CEO, Paulo Roberto de Oliveira, told media that the award of Lot 1 was: “A demonstration of confidence in the work of GS Inima Brasil.” Stating the project was “about transforming lives, bringing dignity, and promoting public health.”

As well improving sanitation and health, the projects will create jobs and help to drive economic development across the state.

 

More sanitation projects in the pipeline

Immediately after the auction, Casagrande announced that further sanitation projects were in the pipeline, in particular to cover the 32 municipalities not served by Cesan, with finance provided by the Brazilian Development Bank.