General Information

Type of investment

  • Brownfield

Sponsor

Location

  • Rio de Janeiro

Estimated investment (R$ million)

33,572

Grant (R$ million)

**

** Grant amount not yet disclosed.

Description

The project includes the concession of Water Distribution, Sewage Collection and Treatment and Commercial Management services to users in 64 municipalities of the state of Rio de Janeiro, serving 13.7 million people, which corresponds to 85% of the state's population.
 
The state of Rio de Janeiro was divided into four blocks, each containing municipalities both within and outside the Metropolitan Region of the city of Rio de Janeiro (MR). The municipality of Rio de Janeiro was divided into 4 regions, each part of a concession block. Each region covers one or more Planning Areas (APs), which are administrative divisions of the city of Rio de Janeiro.
 
The blocks are defined as follows:
 
- Block 1: AP 2.1 + 40 municipalities (blue in the figure 
 
- Block 2: AP 4 + 7 municipalities (orange in the figure)
 
- Block 3: AP 5 + 8 municipalities (red in the figure)
 
- Block 4: AP 1, 2.2 and 3 + 8 municipalities (purple in the figure)
 
CEDAE, the state-owned company that currently provides all services, will remain responsible for the collection, treatment and supply of raw water for the private operator in 13 municipalities of the MR, maintaining the operation of the major systems: Guandu, Imunana-Laranjal, Lajes and Acari. The private operator will also be responsible for water treatment In the remaining 51 municipalities.
 
The goals of universal coverage, to be met by the private operator, are
 
- Water: from 87% to 99% of the population between the eighth and the fourteenth year, depending on the municipality.
 
- Sewage: from 44% to 90% of the population between the fifteenth and the twentieth year, depending on the municipality.

Contractual structure

Privatization format

  • Concession

Project revenues

  • Water and sewage tariff

Contract term

35 years

Auction type

  • Highest grant

Demand information

Total population within the scope of the project: 13,739,036

Timetable

Milestone Estimated quarter Status
technical studies 1Q 2019 completed
public hearing 2Q 2020 completed
approval of audit courts 3Q 2020 to be carried out
tender documents 4Q 2020 to be carried out
auction 1Q 2021 to be carried out
contract 2Q 2021 to be carried out