Tender for sanitation concession in Rondônia is canceled due to lack of proposals

The concession contract was estimated at R$8.47 billion and provided for the transfer of services to a private company for a period of 35 years.

With the absence of proposals, the government informed that it will evaluate, together with the Microregion of Water and Sewage of the State of Rondônia (MRAERO) and the National Bank for Economic and Social Development (BNDES), the market conditions and the technical and financial aspects of the project. There is still no defined deadline for the resumption of bidding.

The winning company would be chosen based on two criteria: the greatest discount offered on water and sewage tariffs to consumers and the highest fixed concession amount paid to the State.

➡️ The grant is an amount paid by the company to the government for the right to assume sanitation services. In the auction, the company that offered the combination of the biggest tariff discount for consumers and the highest concession value to the State would win.

The concession project was estimated at R$8.47 billion and provided for investments and the operation of water supply and sewage services in the municipalities that make up the Rondônia Water and Sewage Microregion.

Before the cancellation, the bidding was suspended by a court decision. A popular action questioned points in the concession project, such as the social tariff rules and the possible financial risks for the state.

The 1st Finance and Public Health Court of Porto Velho granted a provisional decision, called an injunction, which interrupted the bidding process. The Government of Rondônia appealed.

When analyzing the appeal, the Rondônia Court of Justice (TJ-RO) suspended the injunction and allowed the process to continue. The court considered, among other points, that the strike could cause harm to the public administration and interrupt the bidding process.

The TJ-RO's decision did not mean that the Court considered the project completely regular. The court only allowed the bidding to continue while the popular action is still analyzed.

With this, the government resumed the competition schedule. Delivery of the envelopes was scheduled for September 22nd and the auction for September 29th.

After the cancellation, the government said in a statement that it intends to maintain dialogue with potential investors and other parties involved to gather information that will help define the project's next steps.