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Government of the State of Rio de Janeiro signs concession contracts for blocks 1, 2 and 4 of CEDAE, totaling BRL 22.6 billion in concession fees

Home > PPI English > News > Government of the State of Rio de Janeiro signs concession contracts for blocks 1, 2 and 4 of CEDAE, totaling BRL 22.6 billion in concession fees

12 de agosto de 2021

Government of the State of Rio de Janeiro signs concession contracts for blocks 1, 2 and 4 of CEDAE, totaling BRL 22.6 billion in concession fees

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On August 11 and 12, the government of the state of Rio de Janeiro signed with the companies Águas do Rio (linked to the AEGEA consortium) and Iguá Rio de Janeiro (Iguá consortium) the concession contracts for water and wastewater services related to blocks 1, 2 and 4 of CEDAE - State Water and Sewage Company, auctioned off in April this year with support from BNDES, the Ministry of Regional Development (MDR) and PPI.

With an offer of BRL 15.4 billion, the AEGEA group won the auction of blocks 1 and 4, which cover 26 municipalities and neighborhoods in the Center, South and North Zones of the state capital. The Iguá consortium won the auction for block 2, which covers the municipalities of Paty de Alferes and Miguel Pereira and neighborhoods in the West Zone of the capital, with an offer of BRL 7.2 billion. The concessions are expected to generate more than 40,000 direct and indirect jobs and investments of more than BRL 24.4 billion over the 35 years of the contract.

Social, economic and environmental benefits

In accordance with the universalization targets established by the new legal framework for sanitation, concessionaires must ensure access to water supply services for 99% of the population and access to wastewater collection and treatment services for 90% of urban households in the municipalities involved in the concession.

In addition to socioeconomic impacts, the process is a major advance for the environmental policy of the state of Rio de Janeiro. "In the first five years, concessionaires should invest BRL 2.7 billion to reduce the pollution of the Guanabara Bay and its rivers, improving the quality of water in beaches and lagoons, which benefits the environment and the tourism industry ”, highlights the Special Secretary of the PPI, Martha Seillier.

Another BRL2.9 billion should be invested in reducing the pollution of the Guandu River, which supplies most of the Metropolitan Region of Rio de Janeiro, and BRL250 million to help clean up the Jacarepaguá and Barra lagoons.

Concessionaires are also expected to invest at least BRL 1.5 billion in expanding water supply and sanitation in slums and undeveloped communities in the municipality of Rio de Janeiro.

Block 3. Formed by the municipalities of Itaguaí, Paracambi, Pinheiral, Pirai, Rio Claro, Seropédica and neighborhoods in the West Zone of Rio de Janeiro, block 3 had a single bid during the auction session held in April, and the company later withdrew the offer. The studies are under review so that the project can be auctioned off again.

 

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