RIO DE AN ANEYRO (AP) – The state of Rio de Janeiro on Friday privatized its sewer system after years of unfulfilled promises to improve sewage treatment and clean up the state’s polluted Guanabara Bay.
It was Brazil’s largest wastewater privatization ever, և the first to take place since the new regulatory system came into force.
Cedae utility company visits 64 communities in Rio, 35 of which are auctioned off. Most of the assets of the state-owned company were divided into four water distribution and sewerage service areas. The companies have applied for 35-year concessions, with the exception of one, six other municipalities in the western part of the capital of the same name.
Sanitation company Aegea won the privilege of two of the four blocks by submitting bids worth a total of 15.4 billion reais ($ 2.8 billion). Higuain took second place with a record 7.3 billion reais.
A state official later told reporters that the fourth area would be re-auctioned.
Prior to the failure of the last block auction, Rio had predicted an investment of about 30 billion reais 6 2.6 billion reais to clear the Gulf of Guanabara over the next five years.
The winning bidders aim to collect ել treat 90% of wastewater by 2033.
According to the Trata Brazil Institute, an organization focused on water and wastewater treatment, only 65% of Rio’s sewage is properly treated and 35% is improperly discharged. Four of Brazil’s 10 worst sanitation cities are located in the state of Rio, surrounded by the Gulf of Guanabara.
Promises to improve Bovakh’s sanitation have been made since 1992 at the UN Conference on Environment and Development, also known as the Earth Summit. Recently, the city of Brazil promised to host the 2016 Olympic Games in its bid to cure 80%. from its sewage before the games, but again failed to supply.
The privatization of Cedae sparked controversy, with some state legislators mobilizing to try to block it. But the judge thwarted their efforts by ruling Friday morning, hours before the auction.
Utilities will continue to exist in a much smaller form, collecting and purifying water for sale to distributors.