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The city of Rio das Ostras in Rio de Janeiro state is seeking to renegotiate its 2007 waterworks public-private partnership (PPP) contract with Odebrecht Ambiental.
The city announced that it will audit the contract, which runs through 2024, and suspend payments to the concession holder, while seeking to reduce the current annual concession payment of 107mn reias (US$44.3mn), news service PPP Brasil reported.
The concession holder is responsible for expanding and maintaining the city's sewer system, with works such as installing wastewater pipelines, collector trunks and pumping stations.
The contract also calls for expanding the capacity of the existing treatment plant, as well as storm-water drainage and paving works.
Odebrecht Ambiental, a subsidiary of the Odebrecht group, serves 35,989 people in the city, or about 29% of the residents.