Brazil's Rio Grande do Norte State Advances $2.06 Billion PPP Projects
2026-06-10 11:17
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en.Wedoany.com Reported - Brazil's Rio Grande do Norte state is advancing two major public-private partnership (PPP) initiatives, totaling 10.6 billion reais (approximately $2.06 billion), involving sanitation facilities and a green port industrial project.

Brazil

In the sanitation sector, a mature PPP project is based on the assets of the state water utility, Companhia de Águas e Esgotos do Rio Grande do Norte (Caern). The company concluded the public consultation phase for this sanitation PPP project this week. The project, structured by the state government in partnership with the Brazilian Development Bank (BNDES), plans to invest 3.8 billion reais in 48 municipalities across Rio Grande do Norte. The contract documents will subsequently be submitted to the State Audit Court for legal review and await approval from the Water and Sewage Micro-Region (MRAE) board. The government plans to issue a tender notice in the fourth quarter of 2026. Governor Fátima Bezerra of Rio Grande do Norte stated that the basic sanitation PPP is a strategic issue for the state's sustainable development. The contract aims to achieve universal service coverage in accordance with the Basic Sanitation Legal Framework, targeting an increase in sewage treatment coverage for the urban population from the current 35% to 90% by 2033. The contract is valid until 2051, covering municipalities in the Central-West and Coast-Seridó micro-regions, benefiting 1.9 million residents.

Another key initiative is the green port industrial project. The state government has signed a service order authorizing BNDES to begin structuring the first module of the project, located in Caiçara do Norte on the state's northern coast. This is a crucial step in determining whether to adopt a concession or PPP model. This large-scale project is expected to take 10 years to complete and become operational, with a total investment of 6.8 billion reais. The project will be implemented in three phases across modules. The first phase is the basic infrastructure phase, with an investment of 3.1 billion reais, focusing on offshore engineering, dredging to form an access channel, and constructing docks and yards to enable operations. The second phase is the expansion phase, with an estimated investment of 2.1 billion reais, to implement dedicated berths, storage tanks, and utilities, paving the way for green hydrogen and green ammonia production. The third and final phase involves the integration and diversification of activities, with an investment of 1.6 billion reais, building a roll-on/roll-off terminal, optimizing vehicles, and chlorochemical products. The total investment across all three phases amounts to 6.8 billion reais.

BNDES's study will commence later this month, including the preparation of a preliminary assessment covering market research, cargo forecasting, and competitiveness analysis. From March 2027 onwards, project modeling (environmental, engineering, and partnership models) will be completed, at which point the selection process for an investor partner can begin. This partner must commence project execution by the end of 2027. Despite delays in some state concession and PPP agendas due to the upcoming October elections, the medium- to long-term prospects for these contracts remain positive. Marcus Cavalcanti, Special Secretary of the Federal Government's Investment Partnership Program (PPI), stated that Brazil's concession and PPP agenda must maintain continuity in the coming years, as these contracts have become a consensus among different political parties within the country.

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