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Brazil's Rio Grande do Norte state water utility Caern has agreed to a pre-contract to renew its sanitation concession with the city of São José de Mipibu, the utility said in a release.
The temporary agreement involves providing water supply and sewerage services for the municipality until December 2013. A definitive contract should be signed in July, once the town has finalized its municipal sanitation plan.
Caern is currently carrying out 7.4mn reais (US$4.68mn) in investments to improve sewerage services. Some 2.4mn reais, or 32%, has been completed, although work has been delayed by rains, the release said.
Work is estimated to wrap up in July 2012 and should benefit at least 19,000 residents.
Following the renewal, Caern also plans to replace asphalt and pavement on urban roads as well as conduct a survey regarding water losses in the neighborhood of Laranjeira do Abdias.
São José de Mipibu is located some 31km south of state capital Natal, with a population of approximately 40,000.