Total Project Cost Estimated at about KRW7tn
GS Inima, a subsidiary of GS E&C and a world-class water treatment company, has entered a race to win a mammoth-sized Brazilian sewage treatment plant project.
GS Inima Brazil recently partnered with a local construction company, Marquise Infraestrutura, to bid for a project to build sewage treatment facilities in 24 cities in the Brazilian state of Ceara.
The consortium will bid for two Public Private Partnerships (PPPs) which are supported by Brazil’s state-run bank, the Social and Economic Development Bank (BNDES).
The 24 cities are divided into two regions. Block 1 includes 17 cities in the southern part of Ceara, while Block 2 consists of the state capital Fortaleza and six cities surrounding it.
Of the total planned investment, 2.7 billion Brazilian real (about 649.8 billion won) will be allocated to Block 1 and 3.5 billion Brazilian real (approximately 842.4 billion won) to Block 2. This amount excludes the operating costs of 3.5 billion Brazilian real (about 842.4 billion won) for Block 1 and 8.85 billion Brazilian real (about 2.13 trillion won) for Block 2. The internal rate of return (IRR) was estimated at 7.88 percent.
The two contracts are worth up to 28.9 billion Brazilian real (about 6.95 trillion won), which is the sum of the installments to be paid by the government. The contract will run for 30 years. This amount is a maximum payment considered by the government, and the company with the lowest bid wins the tender.
The delivery of the request for proposal is scheduled for Sept. 22, and bids should be made by Sept. 27. A total investment of 6.2 billion Brazilian real (about 1.492.2 billion won) is planned for the construction project, which will be completed by 2033.