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The council of Brazilian city Orlândia in São Paulo state has rejected mayor Rodolfo Tardelli Meirelles' request to privatize sanitation services, Tardelli told BNamericas.
The mayor, who made the request in May, is looking for ways to come up with 60mn reais (US$38.6mn) in investments to fulfill the municipality's sanitation plan for the next 5-10 years.
"We do not have the funds to cover all that needs to be done and a concession would have been the best option," Tardelli said, adding that he is now looking into other solutions.
One of the main problems Orlândia is facing is replacing piping made of asbestos, which causes health problems and requires constant repair.
Currently, potable water supply and sewage collection and treatment services are covered by the city's water and sewerage department (DAE).
Orlândia is located near the cities of Ribeirão Preto, Franca, Sertãozinho and Barretos. It has a population of about 37,500.