The status of Brazil's biggest desal plant project

The project to build Brazil’s largest desalination plant for human consumption is facing headwinds.

Located in Ceará state capital Fortaleza, the plant is seeing opposition from telecom operators and regulator Anatel as it will be built close to docking sites for dozens of submarine cables. Anatel argues that changes made to the original plans were insufficient to mitigate the risk of damage to the cables, which are key for Brazilian and South American telecom operations.

SPE Águas de Fortaleza, a consortium led by infrastructure firm Marquise, is heading the project with the support of state-owned water utility Cagece. Under a 30-year PPP contract, SPE will invest 3.1bn reais (US$602mn) to build, operate, and maintain the plant that will supply potable water to Cagece’s Mucuripe and Praça da Imprensa reservoirs.

In this interview, Marquise director Renan Carvalho talks with BNamericas about the headwinds, the current status of the project, and the new construction launch date.

BNamericas: What’s the status of the project called Dessal?

Carvalho: Construction of Dessal was scheduled to begin in March this year, but the state government chose to carry out further studies to certify the project's solutions. 

SPE Águas de Fortaleza, responsible for the construction and operation of Dessal, hired experts recognized by universities and the market to present studies on the safety of equipment. 

One of them was from DHI [Danish Hydraulic Institute], a Danish consultancy specializing in projects in aquatic environments, and the other study was by a consortium formed by the following universities: Universidade Federal do Ceará, Pontifícia Universidade Católica do Rio de Janeiro and Universidade Estadual Darcy Ribeiro.

BNamericas: What did these studies show?

Carvalho: Both confirmed what SPE and Cagece have been saying since the start: Dessal doesn’t pose a risk to existing structures in Praia do Futuro, whether on land or sea. They also clearly resolved the issues raised by Anatel in its latest report. 

The issues raised by the telecommunications companies never had any technical basis. The project is supported by the most modern technology in the world. In addition to the engineering companies that make up SPE, Dessal counts on the expertise of IDE Technologies from Israel, the country that’s the largest desalinated water producer in the world, and designer EXE, with construction projects at sea in several countries.

BNamericas: What’s the new date for starting construction?

Carvalho: We’re now working with the expectation that works will begin in July this year as soon as the installation license is issued by Ceará environmental department Semace. All other licenses and documentation are ready.

BNamericas: And when is the plant expected to start operating?

Carvalho: Following the current schedule, the plant is likely to start operating in 2026 and injecting 1,000l/s of water into Fortaleza's distribution system, directly serving 720,000 people in the capital, which will help mitigate recurring problems that the state faces due to constant droughts.

BNamericas: What can you tell us about the project’s capex and financing mechanisms?

Carvalho: The project's capex is 520mn reais. It will be financed through own capital and by development banks that are engaged in structuring projects for the country, such as Banco do Nordeste and BNDES.