Sabesp, Guarulhos city reach deal
São Paulo state water utility Sabesp and the city of Guarulhos reached an agreement over the provision of water and sewage services.
Sapesp will provide such services in the city, except for what is already covered by a public-private partnership deal.
The agreement still depends on the approval by Guarulhos legislators, expected to take place in the next 20 days. After approval, Sabesp will invest 1.7bn reais (US$418mn) to meet the demand of the city.
With the accord, Sabesp ended a dispute against Guarulhos city.
In 2015, alleging Guarulhos owed it 3.2bn reais, Sabesp filed a lawsuit against. Guarulhos is the only city in São Paulo's metropolitan region that buys Sabesp's water but distributes it through its own sanitation authority.
With the recent agreement this debt will be paid off gradually.
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