Aguas do Mirante

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The Brazilian company Equipav was awarded the 30-year concession contract to expand, rehabilitate and operate the sewerage facilities of the city of Piracicaba (state of Sao Paulo) in May 2012. The contract was awarded by the municipality's central administration. The population of Piracicaba was estimated at 367,300. Equipav was awarded the contract by offering the lowest tariff. Only one other company took part in the contest: the Brazilian company Foz do Brasil. The contract was signed in June 2012, and the private sponsor took over the operations of the sewerage services in July 2012. The government agreed to make fixed payments to the concessionaire to compensate for the investments, but no detailed information on these payments was available. Equipav's subsidiary AEGEA was set to lead the project through the establishment of the special purpose company Aguas do Mirante. The private sponsor committed to invest US$ 151.9 million (BRL 300 million) over the life of the project. In June 2012, the IFC approved an US$ 62 million loan to finance AEGEA’s investment in the water and sewerage concession projects led by the company. The construction works in the expansion of the sewerage system commenced in November 2012. In May 2014, the sponsors received the approval on a US$ 83.4 million (BRL 196.04 million) 24-year Term Loan provided from the state-owned bank Caixa Economica Federal and a US$ 65.9 million (BRL 155 million) 1-year bridge loan from Santander, HSBC and BES Investimento do Brasil.