With R$1.5 billion, BNDES supports plan to universalize sewage coverage in Manaus

This press release was published in English using an automatic translation system

The National Bank for Economic and Social Development ( BNDES) will support the implementation of the investment plan of Águas de Manaus , the water and sewage supply concessionaire for the capital of Amazonas. The operation totals R$1.5 billion and aims to universalize sewage coverage in the city. In total, the plan foresees investments of around R$3.08 billion.

The financing will include R$255 million from BNDES Finem (direct support) and the issuance of incentivized debentures, in the amount of R$1.245 billion, with the issuance coordinated by BNDES itself. The water supply service in Manaus is universalized, with water coverage having reached the indicator foreseen in the New Legal Framework for Sanitation. However, the current sewage coverage is around 30%, which is the main objective of the plan for the period from 2023 to 2033.

The plan foresees the execution of approximately 2,335 km of collection networks, 157 km of interceptors, the installation or renovation of 29 sewage treatment plants (ETEs), the implementation of 248 sewage pumping stations, and the execution of approximately 147 km of sewage pumping network.

“Providing universal sewage coverage is one of Brazil’s challenges and requires the implementation of attractive financing solutions, such as the issuance of incentivized debentures, which allow for the investment needed to complete infrastructure projects,” explains BNDES president Aloizio Mercadante. According to him, BNDES has historically been the main financier of infrastructure projects in the country. Since 2000, the bank has financed more than R$1 trillion for the execution of more than 2,000 projects.

The concession – The concession contract, signed in 2000, is intended to provide public water supply, sewage collection and treatment services for a period of 45 years. There are approximately 816 km of sewage collection networks, 4,155 km of treated water distribution networks, including 245 km of adductors, and 52 active wells. This infrastructure is distributed throughout the urban perimeter of the city of Manaus and is associated with pumping stations and treatment plants.