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Brazil's São Paulo state water utility Sabesp (Bovespa: SBSP3, NYSE: SBS) has signed a four-city basic sanitation concession renewal agreement that contemplates 1.2bn reais (US$654mn) in investments over the next 30 years.
The agreement covers the municipalities of Embu das Artes, Itapecerica da Serra, Rio Grande da Serra and Suzano, according to a company release.
Sabesp aims to provide universal potable water supply and sewage collection and treatment services in the municipalities by 2020, benefiting some 750,000 residents.
The largest investment has been earmarked for Suzano, which will receive 546mn reais, local news service Agência Estado reported.
Sabesp will expand the municipality's central water reservoir and double the sub-main network as well as install 14.6km of trunk collector and interceptor pipelines under the company's Tietê river sanitation project.
Additional works will be carried out in the neighborhoods of Ipelândia, Voegels, Dora, Ouro Fino, Jardim do Lago, Jardim Brasil, Ana Rosa, São Marcos and Silvestre under the company's watershed restoration program.
As for the remaining investments, Embu das Artes has been allocated 310mn reais while Itapecerica da Serra and Rio Grande da Serra are receiving 258mn reais and 67mn reais, respectively, the report said.