en.Wedoany.com Reported - The Government of the State of Ceará, Brazil, together with Cagece (Ceará Water and Sewage Company), held a PPP (Public-Private Partnership) auction this Tuesday (30th) at 2:00 PM at B3 (Brazilian Stock Exchange) in São Paulo, bidding for the administrative concession of sewage treatment in 127 municipalities. The contract term is 28 years, with an estimated total investment of nearly BRL 7 billion. The evaluation criterion is the minimum consideration amount payable to the concessionaire.
To facilitate project execution, Cagece divided the aforementioned municipalities into five regional blocks: North Coast, Central-South, Central-East, Three Climates-Massif, and Crato-Ibiapaba Plateau. This model aims to optimize service management and improve operational efficiency, while accelerating sanitation coverage through more integrated planning and investment execution. Through this auction, Cagece plans to achieve 90% sewage collection and treatment service coverage for the population in each municipality by 2033, benefiting an estimated 1.5 million people over the contract period.
Since its enactment in 2023, the implementation of Brazil's new Legal Framework for Sanitation has reached its halfway point, raising questions about the feasibility of achieving its set targets. The law requires that by December 31, 2033, 99% of the Brazilian population has access to drinking water, and 90% has access to sewage collection and treatment services. This PPP model aims to accelerate the nationwide sanitation coverage process. Services to be performed by the winning company include preparing engineering studies and designs, obtaining environmental permits, land acquisition and coverage works, and undertaking interventions to improve water supply and sewage treatment systems. Additionally, the concessionaire is responsible for the operation and maintenance of the sewage system, as well as water meter replacement, transfer and relocation, fraud inspection, user registration updates, and remote metering for large customers.
Under the cooperation framework, Cagece will continue to be responsible for customer relations, billing, and communication and coordination with regulatory agencies, municipal authorities, and each micro-region.
