Waste company Empresa Geral de Fomento expected to be sold to Portuguese group

3 September 2014

Suma, a subsidiary of Portuguese construction group Mota-Engil, has taken first place in the tender for the re-privatisation of waste company Empresa General de Fomento (EGF), according to a report from Parpública and Águas de Portugal, quoted by Portuguese financial daily Diário Económico.

The newspaper added that four companies were in line at this stage of the re-privatisation – Suma, Spain’s Fomento de Construcciones y Contratas (FCC), Portugal’s Domingos da Silva Teixeira (DST) and Belgian group Indaver, whose proposal was disqualified as it was non-binding .

The preliminary report dated Friday was based on eight criteria, and experience in the collection and sorting of municipal solid waste and the fact that the group works with domestic banks tipped the scales in Suma’s favour.

When the EGF privatisation process began, both the Portuguese and international, press said two Chinese groups were interested: Sound Global and Beijing Enterprises Water Group.

At the time it was also announced that Brazilian companies Odebrecht Environmental and Solví, a consortium under the name Environmental Portugal, were also vying for the privatisation of Empresa General de Fomento.

EGF operates in the integrated management of municipal solid waste and has 11 municipal systems of treatment and recovery of solid waste involving a total of 174 municipalities, accounting for over 60 percent of the Portuguese population. (macauhub/EN/CN/BR)