Paraná water utility sets date to tender US$580mn PPP contracts

Sanepar, the public water utility in Brazil's Paraná state, has set the date to hold tenders for three lots of PPP contracts, which are expected to generate combined investments of around 2.9bn reais (US$580mn). 

The bidding processes will take place on May 21, according to information on the internal system of the B3 Brazilian stock exchange, where they will be held.

The auctions for the three Sanepar contracts come only weeks before another important operation in the water and sanitation sector – the privatization of Sabesp, the largest sanitation company in the country, which is currently controlled by the government of São Paulo state.

State authorities are looking to sell a controlling interest in the firm via a share offering that is expected to take place in June.

"Although these are both operations involving sanitation companies, neither of them will distract interest from the other one because they will probably attract different investor profiles," a banker involved in advising on both operations told BNamericas on condition of anonymity.

"Sanepar's PPP contracts will probably attract operating companies, such as Aegea, Iguá Saneamento and GS Inima, while the profile of the investors for the privatization of Sabesp is going to be closer to investment funds," said the banker. 

SANEPAR PPPs

Sanepar's PPPs cover the collection, transportation, treatment and final disposal of sewerage, with the contracts outlining works and operations to be carried out until 2048. Of the total amount to be invested, 48.4% will go to the construction of a wastewater collection network and 24.7% will be spent on building wastewater treatment plants.

Lot 1 comprises the central-east region of the southern state, including 36 municipalities. It outlines projected investments of 934mn reais, benefiting 221,900 people.

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

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

The notice for the PPP contracts can be seen here.