FGV supports Paraná state sanitation company with its first public-private partnership

Auction for execution of sewage services, based on modeling studies carried out by FGV Projetos, was won by bidder offering to be paid 30.65% less than the established maximum price.
Public Policy
19 July 2023
FGV supports Paraná state sanitation company with its first public-private partnership

Fundação Getulio Vargas, through its consulting arm FGV Projetos, recently provided technical advice to the Paraná state sanitation company, Sanepar, as part of an initiative aimed at forming the company’s first ever public-private partnership. The concession contract in question provides for investment of up to R$1.2 billion, encompassing sewage collection, transportation, treatment and disposal services in 16 municipalities in the central and coastal regions of Paraná.

The technical, financial and legal modeling studies were conducted by FGV Projetos, together with Sanepar’s technical team. Luiz Carlos Duque, the executive director of FGV Projetos, considers that the auction represented a conciliatory solution in the context of recent discussions of Brazil’s legal framework for sanitation.

“After the government issued new decrees in this area, the need for adjustments to this contract became clear, in order to balance the interests of public and private sector organizations and achieve the new legal framework’s goal of providing 90% of Brazil’s people with piped water and sewage systems by 2033. The model proposed by FGV, in the form of a public-private partnership, combines Sanepar’s track record of services and experience with the agility and financial interests of Aegea, Brazil’s largest private sector sanitation company,” he says.

The advice provided by FGV Projetos supported technical parameters such as the maximum price per cubic meter of sewage collected and treated, R$4.60. The consortium led by Aegea won last Friday’s auction, hosted by the Sao Paulo Stock Exchange, offering to be paid R$3.19, which is 30.65% less than the maximum price set out in the public notice.

This public tender was the first of three that Sanepar plans to carry out, with the support of FGV Projetos, to procure sewage services in three regions of the state of Paraná. Together, these concessions are expected to generate investment of R$4.7 billion.

To find out about the technical advisory services offered by FGV Projetos, visit its website.

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