Paraná audit court suspends US$570mn water services auction

The audit court of Brazil’s Paraná state suspended an auction planned by state water firm Sanepar involving three PPP contracts with combined investments of 2.9bn reais (US$568mn). 

Initially, planned for May 21, local company Aegea requested the suspension because it takes issue with a rule that allows two or more bids only if no other party is interested in the respective contract. Aegea claims companies should be able to bid for all three contracts without restrictions to allow for synergies.

Sanepar is trying to appeal the ruling.

The contracts cover the collection, transport, treatment and disposal of sewerage, plus works to be carried out through 2048. Of the total investments, 48.4% will go to the construction of a wastewater collection network and 24.7% to building wastewater treatment plants.

The contract for lot 1 is for 36 municipalities in the state’s center-east, outlining investments of 934mn reais and benefiting 221,900 people.

Lot 2, in the west, covers 48 municipalities and entails 1.29bn reais, providing services to 323,800 people.

Lot 3, also in western Paraná, involves 28 municipalities, 685mn reais in investments and services for 328,800 people.