- The scope includes collection, sweeping, implementation of ecopoints, recovery of the Aurá dump and implementation of a new bioenergy landfill;
- The concession will last for 30 years - ending in January 2054;
- Around R$700 million will be invested over the course of the concession;
- The project's strategic rationale involves transferring the concession to CS Infra;
January 2024 - Simpar (SIMH3), through its subsidiary CS Brasilobtained the concession of a public-private partnership (PPP) in the form of a provision of urban cleaning and solid waste management services in the city of Belém-PA. The call for tenders was promoted by the Permanent Tender Committee of the Belém City Council, through the Municipal Sanitation Secretariat - SESAN, which declared the consortium organized by the group the winner of tender no. 02/2023.
The Consortium is made up of CS Brasil together with the companies Terraplena and Promulti Engenharia Infraestrutura. O strategic rationale of the operation involves the transfer of the Concession to the CS Infra, the group company responsible for managing long-term concessions and which manages the Ciclus Ambiental, one of the largest companies in Latin America in the area of integrated management and recovery of solid waste.
The PPP is part of the company's strategy to develop a portfolio of concessions with a focus on providing long-term serviceswhose revenues are resilient and diverse in terms of services, segments and locations with strong growth prospects in strategic sectors in Brazil and with the capacity to generate value and promote development in a sustainable way.
Details of the concession project
The scope of the PPP includes the collection, sweeping, implementation of ecopoints, recovery of the Aurá dump, the implementation of a Waste Transfer Station ("ETR") and a new Waste Treatment Center ("CTR"). The tender also includes the environmentally appropriate treatment, destination and final disposal of solid urban waste and waste from commercial establishments and service providers, with a volume and composition comparable to household waste. It also includes waste from health services and the construction industry.
The expectation is that the services will generate up to 3,000 direct jobs, as well as indirect jobs, an increase in the recovery of recyclable waste and the inclusion of waste pickers in the waste treatment industry. "Our aim is to make waste management in Belém an example of efficiency and innovation in the sector, acting in full compliance with environmental regulations. We will bring all our experience developed over the last few years, with the operation of Ciclus in Rio de Janeiro, which has already delivered more than 2.5 million carbon credits to the World Bank. Together, we will build a more sustainable and environmentally responsible future for everyone," says Fernando Quintas, president of CS Infra.
The new Waste Treatment Center ("CTR") will have the capacity to receive more than 2,500 tons/day of solid urban waste - including households, commercial establishments and service providers, health service waste and construction waste - with the possibility of expanding it to up to 4,000 tons/day, if it eventually serves other cities in the Belém metropolitan region.
The concession will last for 30 years - ending in January 2054 - and will have a monthly consideration of R$32.7 million. The concession has an appropriate mechanism for adjusting the tariff, which will be adjusted annually using a parametric formula. In addition, around R$400 million will be invested in the first ten years, leaving an average of R$15 million to be invested annually until the thirtieth year, totaling around R$700 million.
Check out the main ones positive impacts of the Concession for the Municipality of Belém-PA:
- Environmental recovery of the Aurá dump: Closure and environmental recovery, including the social integration of 12 waste picker cooperatives, with the expectation of reducing CO2 equivalent (greenhouse gas - GHG) emissions by about 3 mm tons in 10 years;
- Increased recovery of recyclable waste: Encouraging recycling by setting up Ecopoints and Voluntary Drop-off Sites ("LEVs"), which make it possible to adopt environmental education actions and increase the population's adherence to these programs;
- New sustainable projects: Possibility of implementing innovative technologies capable of generating clean energy and other additional sources of income by transforming polluting inputs into biogas, carbon credits and demineralized water.
SIMPAR and its subsidiaries are focused on prospecting opportunities in line with their commitment to strong discipline in the allocation of capital and the expansion of returns, guided by the highest standards of corporate governance. The signing of the concession contract which is the subject of Tender No. 02/2023 is subject to approval and award by the granting authority, as well as the fulfillment of conditions precedent by the Consortium.
About CS Brasil
CS Brasil provides services to the public and mixed-economy sectors. The company offers fleet management and outsourcing, including fleet customization, maintenance and operation, with or without a driver. CS Brasil also offers solutions for passenger transportation and urban cleaning. Find out more at: https://csbrasilservicos.com.br/.
About CS Infra
CS Infra is a platform for managing long-term concessions and is responsible for the companies Ciclus Ambiental, one of the largest companies in Latin America in the area of integrated management and recovery of solid waste; infrastructure concessions CS Grãos do Piauí, responsible for the operation, maintenance and expansion of 276.8 km of the Transcerrados Highway (PI-397 and PI-262) which covers around 25 municipalities; CS Aratu 12 and CS Aratu 18, responsible for the management of terminals 12 and 18 at the Port of Aratu (BA); and the concession of the BRT in the city of Sorocaba (SP).
About SIMPAR
Holding company that controls seven independent companies - JSL, Movida, Vamos, CS Infra, CS Brasil, Automob and Banco BBC Digital. The group has more than 49,000 employees aligned with a strong culture and values that guide the way the company is and does things. A member of B3's ISE portfolio, the company has a management model that produces sustainable results and adheres to strict ESG practices. Operating throughout Brazil and in eight other countries in South America, Europe and Africa, Simpar has been listed on B3 since 2010 (SIMH3). Find out more at: https://simpar.com.br.