Mar 20 • 02:00 UTC 🇧🇷 Brazil Folha (PT)

Sewage sanitation PPP in Goiás draws criticism, lawsuits, and will have a diluted auction

Goiás' sewage sanitation public-private partnership project is facing criticism and legal actions just before the auction, with low investor interest anticipated.

The public-private partnership (PPP) project for sewage sanitation in Goiás has been criticized and is facing various judicial actions from companies within the sector just ahead of the auction scheduled for next Wednesday. Unlike recent concessions that attracted significant interest from major water and sewage operators, this upcoming auction is expected to have no participation from any of Brazil's leading operators. Companies have pointed out flaws in the project’s model as key reasons for the lack of investor interest and for discouraging participation in the PPPs.

Out of the three blocks set for bidding, only one has received a proposal, and that too from just a single proponent, indicating a lack of confidence amongst potential investors. Familiar sources suggest that under the current circumstances, the state government led by Ronaldo Caiado (PSD) is contemplating the possibility of canceling the auction altogether and developing a new bidding process, possibly for the block that did receive an offer. This indicates significant uncertainty surrounding the project and could lead to further delays in improving sewage infrastructure in the state.

In response to the criticism, Saneago, the state sanitation company, underscored its commitment to a transparent process. However, they have refrained from making extensive comments, following recommendations from the bidding committee. The Goiás State Secretary of Infrastructure has stated that they are monitoring the situation closely as the scheduled auction date approaches, indicating that the state's administration recognizes the importance of resolving these issues for the successful implementation of the PPP model in water sanitation services.

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