Ceará Saneamento Consortium wins block 1 of Cagece PPP

The Ceará Saneamento Consortium, represented by the broker Safra, presented the only proposal for block 1 (North-Coast) and won the first set of municipalities in the auction for the administrative concession of sewage services for 127 municipalities promoted by the Government of Ceará and Cagece (Companhia de Água e Esgoto do Ceará), held this Tuesday (30), at B3.

The group offered a consideration of R$3.741 billion to be paid by the concessionaire, which represents a discount of 1.15%.

The municipalities were organized into five regional blocks: North-Coast, Center-South, Center-East, Três Climas-Massif and Sertões de Crateús-Ibiapaba.

The division seeks to optimize service management and ensure greater operational efficiency in the implementation and expansion of sewage systems.

See below:

Map of the five regional sanitation blocks foreseen in the Cagece PPP - Disclosure/Cagece
With the event, Cagece will achieve universal sewage collection and treatment for 90% of the population of each municipality by 2033, benefiting around 1.5 million people over the duration of the contracts.

Sanctioned in 2023, the milestone has already exceeded half the deadline, spreading doubts about the ability to achieve the set goals.

The New Sanitation Legal Framework stipulated that 99% of the Brazilian population have access to drinking water and 90% to sewage collection and treatment by December 31, 2033.

Among the services to be carried out by the winning companies in the competition are: preparation of studies and engineering projects, environmental licensing, expropriation, execution of universalization works and execution of systems improvement works.

In addition, the companies will be responsible for the operation and maintenance of sewage systems, replacement, transfer and displacement of water meters, fraud checks, registration updates and telemetry for large customers.

Cagece will continue to be responsible for customer relationships, collection of fees and relationships with the regulator, city halls and micro-regions.

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Source: CNN