São Paulo's Mogi Mirim considers waterworks PPP

The city of Mogi Mirim in Brazil's São Paulo state is eying the possibility of leasing out its potable water supply and sewerage services.

The idea to offer works under concession was brought up during a public hearing conducted by the president of municipal water utility Saae, Luciano Lopes, waterworks portal Saneamento Basico reported.

During the meeting, the president highlighted the city's water loss rate of 45% and the utility's shaky financial situation.

Leaks in waterworks systems are caused by excess system pressure, the age and materials used for pipelines, and the poor quality of repair services, the report stated.

The regions in worst shape are the downtown district and the neighborhoods of Parque das Laranjeiras, Parque da Imprensa and Santa Cruz.

The utility is also on the brink of losing money, according to Lopes.

30-YEAR PLAN

The city's 2014-44 sanitation plan calls for 222mn reais (US$70.7mn) in investments, with 129mn reais for water supply works and 92.6mn reais for sewerage works.

By the end of the period, water losses should be cut to 30%, according to the utility.

The plan was developed in 2013 by local engineering company Ema Engenharia Ambiental.