Brazil's Guarulhos approves deal with Sabesp
Councilors in Brazil's Guarulhos city approved a deal with São Paulo state water utility Sabesp for the supply of water and sewerage services.
In September, Sabesp announced the agreement to provide services in the city in areas not covered by a public-private partnership. The company plans to invest 1.7bn reais (US$441mn) in Guarulhos.
The deal required the approval of the city's council as it involved terminating a dispute between Sabesp and Guarulhos.
In 2015, Guarulhos, Sabesp filed a lawsuit against the city claiming it was owed 3.2bn reais. Guarulhos, which is home to Brazil's largest airport, is the only city in the São Paulo metropolitan region that buys water from Sabesp but distributes it through its own utility.
With the agreement the debt will be paid off gradually.
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