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Brazilian city considers ending CAB Ambiental waterworks PPP

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Brazilian city considers ending CAB Ambiental waterworks PPP

Lawmakers from the city of Atibaia in Brazil's São Paulo state are considering the cancellation of a public-private partnership between its municipal water utility SAAE and local water and sanitation company CAB Ambiental.

According to SAAE superintendant Fabieane Santiago, SAEE is not making its full installment payments to CAB Ambientsl as a result of continuous breaches of contract, says city councilman Daniel Martini.

If SAAE alerted the company of their breaches, "I would like to receive a copy of those documents," Martini said in a council release.

Another council member evaluating the problem is Paulo Pereira de Araujo, the release said.

De Araujo is asking for copies of contract notices made between the two parties regarding all services provided by CAB Ambiental since the beginning of the PPP.

The contract was signed in December of 2012 and calls for reaching universal sewage collection and treatment coverage within five years, i.e. 2017, according to a CAB Ambiental's website.

The PPP involves some 98.4mn reias (US$27.9mn) in investments.

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