Project Name: Structuring of a Privatization Project Through Private Sector Participation in Public Water Supply and Sanitation Services, Aiming at Universal Access in the State of Sergipe
Year: 06/2022 – 12/2024
Location: São Paulo / SP and Sergipe
Client: Brazilian Development Bank – BNDES (direct) and Government of the State of Sergipe (indirect)
Main Project Features: Provision of professional advisory services for structuring the privatization and private sector concession model for public water supply and sanitation services across 74 municipalities in the State of Sergipe, targeting full service coverage and universal access.
Activities Performed:
- Project Management Office (PMO): General coordination of project activities, schedule management, report and financial model preparation, client deliverable organization, meeting facilitation, and consortium financial tracking.
- Economic & Financial Evaluation: Support in building the Discounted Cash Flow (DCF) valuation model and structuring an automated, dynamic Excel financial modeling system.
- Cost of Capital Analysis: Calculation and determination of the Weighted Average Cost of Capital (WACC) tailored to the project’s risk profile.
- Business Model Structuring: Formulation of the transaction structure, including legal-institutional arrangements, optimal geographical grouping (considering engineering, legal, and financial constraints), service scope, and strategic prioritization criteria.
- Business Plan Development: Support in elaborating the reference Business Plan and parametric short-, medium-, and long-term cash flow projections for DESO (Companhia de Saneamento de Sergipe), ensuring system compatibility and financial sustainability for remaining state operations.
- Stakeholder Engagement & Public Consultation: Organization of market-sounding events (roadshows) and structured analysis of public feedback during the public consultation and audience phases.