Investor Presentaiton slide image

Investor Presentaiton

PANORAMA OF THE PRIVATE SECTOR'S PARTICIPATION IN SANITATION 2021 TABLE 5 Cedae (RJ) Auction Result Source: ABCON SINDCON A NEW SOCIAL AND ECONOMIC FRONTIER FOR BRAZIL Mato Grosso do Sul Rio de Janeiro (Sanesul) In partnership with state company Sanesul, the PPP of sewage services was agreed at an auction held on 23 October 2020, at B3, in São Paulo. The operation covers 68 municipalities in the state of Mato Grosso do Sul and includes investments of BRL 3.8 billion in 30 years of contract, benefiting 1.7 million people. The bidding process involved six consortia and resulted in significant negative good- will -38.46% that represents the saving of resources for public investment in years to come. - The state capital, Campo Grande, has had a hefty investment in its private water and sewage concession since the beginning of the last decade. (Cedae) As the largest infrastructure project in the country, the Cedae auction, held on 30 April, raised BRL 22.62 billion, to be shared be- tween the state and the municipalities that participated in the bidding process. The amount represents goodwill of 134% over the minimum grant provided (BRL 9.7 billion for three blocks with 29 municipali- ties), and will used for investments by the state government and municipalities to improve the lives of some 11 million inhab- itants. By way of comparison, in early April, the federal government raised BRL 10 billion in concessions for airports, port terminals and railways during a week of infrastructure auctions, the so-called Infra Week, which works out at less than half the proceeds from Cedae's auction. The consolidation of the competition brings the opportunity to inject BRL 46 billion into the economy. Block Block 1 Block 2 Block 4 Total Minimum grant (BRL billion) 4.037 3.172 2.503 9.712 Winning Grant 8.2 7.286 7.203 22.689 (BRL billion) Goodwill (%) 103% 130% 188% 134% Benefited population 2.8 1.2 7 11 (million) Planned investment (BRL billion) 8.3 2.7 16 27 With the project, non-urbanized favelas in Rio de Janeiro will receive a minimum in- vestment of BRL 1.86 billion in water sup- ply infrastructure. You just need to consider how much Rio de Janeiro will benefit from a clean Guanabara Bay to gauge the ben- efits of breaking with the current cycle of permanent lack of resources for sanitation in the state. Every single day, 282 tonnes of sewage or 28 trucks filled with material that should have been treated before returning to na- ture, are poured into Guanabara Bay. This is like a Christ the Redeemer of waste being unloaded every four days on the main at- traction of the Marvellous City. Were this to depend on Cedae's current level of investment, the problem of univer- salizing sewage treatment would only be solved in the next century. With the bidding process, the deadline will fall to 12 years. Cedae's current assistance levels only pro- vide 88% of the population with water sup- ply and only 37% with sewage collection. Cedae may get significant revenue from the sale of raw water, and so reduce operating costs and become financially sustainable. For the state, which faces a serious fis- cal situation, the impact on tax collection reaches almost BRL 1.4 billion, especially in the case of sales tax (ICMS), with a revenue forecast of about BRL 633 million. The success of the Cedae auction ushers in a great opportunity and incentives for new bidding processes to be made soon, already under the guidelines of the new milestone of sanitation. 62 69 63
View entire presentation