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Aegea secures $250 million financing for sewage infrastructure in Manaus, Brazil

About the entity

  • Aegea secures $250 million financing for sewage infrastructure in Manaus, Brazil
    Estação de Coleta e Tratamento de Esgoto da Timbiras
    Credit: ETE/Timbiras

Brazilian development bank (BNDES) has approved a $250 million financing package for a subsidiary of water and sanitation company Aegea Saneamento. The financing package will support a large-scale sewage infrastructure investment in Manaus, Brazil, aligning with national sanitation goals.

The total investment plan, valued at R$3.08 billion, includes a financing package of R$1.5 billion. This will be comprised of R$255 million from BNDES Finem (direct funding) and R$1.245 billion raised through incentivized debenture issuance, a process coordinated by BNDES itself.

While Manaus has already achieved universal water supply coverage, meeting the targets set by Brazil’s New Legal Framework for Sanitation, its sewage coverage remains at approximately 30%. The newly approved investment plan, set for implementation between 2023 and 2033, aims to significantly improve this figure.

The comprehensive infrastructure plan includes the construction of approximately 2,335 km of sewage collection networks, 157 km of interceptors, and 147 km of sewage pumping networks. Additionally, it calls for the installation or renovation of 29 sewage treatment plants (ETEs) and 248 sewage pumping stations.

"Achieving universal sewage coverage is one of Brazil’s major challenges and requires innovative financing solutions, such as incentivized debenture issuance, to attract necessary investments for infrastructure projects," stated Aloizio Mercadante, president of BNDES. He emphasized that BNDES has been a key financier of Brazil’s infrastructure development, having provided over R$1 trillion in funding for more than 2,000 projects since 2000.

About the concession agreement

The concession contract, signed in 2000, grants Águas de Manaus, the local water and sewage service provider, the responsibility for public water supply, sewage collection, and wastewater treatment for a 45-year period. Currently, the city’s infrastructure consists of 816 km of sewage collection networks and 4,155 km of treated water distribution networks, including 245 km of water mains and 52 active wells. These facilities are strategically distributed across the urban perimeter of Manaus, ensuring water supply while enhancing sewage management systems.

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