Brazilian firms Escave Bahia and SulBrasil have started construction of the R$320m ($189m) sanitation project in Blumenau City, Santa Catarina state.
The firms have been contracted by the Blumenau City water utility Foz do Brasil for the project.
Foz do Brasil COO Antonio Carlos Brandão de Alencar told BNamericas that the initial phase will require an investment of R$219m ($129m) and is expected to be completed in the end of 2015.
Under the contract, Escave will install 520km of sewage pipeline and SulBarsil will construct three wastewater treatment plants.
The project will be financed through federal savings bank Caixa Econômica Federal
Foz do Brasil has made an initial investment of R$50m ($29.5m) for the project and will seek an additional R$51m ($30.1m) for the final phase of the project.
