The Paraná state water utility is seeking to enter the solid waste business and is also looking at providing services in other Brazilian states,
The utility will invest over US$2mn in the project.
The plan will serve to ensure water supplies for 42,000 households.
Christianne Dias Ferreira will be the new president of the ANA.
Although the company is asking for compensation from national water authority Conagua, both parties have reportedly started negotiations to revive the El Zapotillo project.
A municipality in the Biobío region of southern Chile alleges that water utility Essbio supplied contaminated water to users over the weekend.