Technical cooperation agreement signed between the National Bank for Economic and Social Development (BNDES) and the Inter-American Development Bank (IDB) will allow the prior assessment of the feasibility of public-private partnership (PPP) projects and water service concessions and sanitation, with a focus on slums and rural areas of the country.
With funds donated by the IDB in the amount of US$ 350 thousand, parametric tools will be developed that will help the BNDES in the structuring process, especially in remote and less financially viable regions. The idea is to direct and expand investments to these locations, reducing the associated risks and increasing the probability of success for all those involved.
According to the BNDES, one of the tools will establish parameters to previously assess the technical, financial and economic feasibility of projects for universal water and sanitation in a municipality, a group of municipalities or a region. “This preliminary assessment will speed up and allow a more efficient use of the resources used in the structuring of the projects, since the BNDES will have at hand, quickly, the necessary information to carry out the modeling with more security”, said the bank, through your press office.
BNDES informed that the work has already started. “We are currently in the final stages of hiring external consultants. The forecast is to complete all studies by the end of 2022”.
Specialists from the two institutions will work together with teams of consultants to create a tool to calculate the operating costs (Opex) and capital investments (Capex) of water and sanitation services in slums and rural areas. These data will be included in the financial models of PPP and concession contracts, in order to make it possible to define actions to serve these areas. The model to be developed will be important to meet the goal of universal sanitation service in the country, completed the BNDES.