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The city of Taubaté in southeastern Brazil's São Paulo state is planning a tender to concession the municipality's basic sanitation services, according to mayor Robert Peixoto.
The contract of the current concession holder, state water utility Sabesp (Bovespa: SBSP3, NYSE: SBS), expires on December 31, local news service VNews reported.
On Thursday (Dec 22), the city council rejected Sabesp's 60mn-real (US$32.5mn) contract renewal offer, which included a 33mn-real payment to the city immediately and another 27mn reais in 2013.
Eight council members voted for the renewal and six against. A total of 10 votes are needed for approval.
Sabesp's contract will be extended until after the new concession is awarded.
The utility declined to comment on the matter when contacted by BNamericas.