São Paulo state water utility Sabesp launched a consultancy tender to carry out environmental impact studies and reports (EIA-RIMA) to prepare for a water supply improvement initiative budgeted at some 504mn reais (US$226mn).

The tender, priced at a 4.28mn reais, involves studies to interconnect the Jaguari reservoir in the Paraíba do Sul river basin to the Atibainha reservoir in the PCJ basin (Piracicaba, Capivari and Jundiaí rivers), according to a Sabesp bids call.

Companies or two-party consortiums may request tender clarifications for the 18-month project until August 8. Proposals are due August 15.

Interested parties must have a minimum working capital of 260,000 reais and consortiums must prove a capital of 338,000 reais, the call said.

The Jaguari-Atibainha reservoirs project is the largest investment under Sabesp's 826mn-real emergency plan to combat water shortages in 2014-15.

While the Paraíba do Sul river basin is located in southeastern Rio de Janeiro and Minas Gerais states, the PCJ basin feeds São Paulo state's Cantareira water system, which has been experiencing drought since the beginning of this year.