Public waste management services in Brazil are the responsibility of city municipalities, which may contract out the operation of these services to private enterprises. Within this work, the economic feasibility of a solid waste treatment project in the municipality of Niterói is analyzed in accordance with the rules established by the bid document n 02/2008. A real options approach was used for the analysis considering that there are many managerial flexibilities and significant uncertainties about the volume of waste to be treated. The bid rules award the contract to the lowest bidder, so the strategy used was to value the project considering the net present value of the base project (landfill) as equal to zero, and to consider the option of adding recycling facilities and the implementation of a power generation plant throughout the period of the concession. The result of this strategy was a net present value of R$1.642.000.