CAB Cuiaba

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The Brazilian company CAB Ambiental, a subsidiary of Galvao Engenharia Group, was awarded the 30-year concession contract to expand, rehabilitate and operate the water and sewerage facilities of Cuiaba (state of Mato Grosso) in December 2011. The contract was awarded by the municipality's central administration, and the private sponsor committed to reach 100% of the population with water and sewerage provision by 2015 and 2022, respectively. The population of the area was estimated at 553,000. CAB Ambiental was awarded the contract by offering the lowest tariff (US$ 10 or BRL 19.80). The company also committed to pay to the government a total of US$ 261.3 million (BRL 516 million) for the concession rights. Only one other company took part in the contest: Foz do Brasil S.A. The contract was signed in February 2012, and the private sponsor took over the operations of the sewerage services in April 2012. CAB Ambiental's subsidiary CAB Cuiaba was set to lead the project. The private sponsor committed to invest US$ 455.7 million (BRL 900 million) over the life of the project. In August 2014, the state-owned bank BNDES approved a US$ 100.8 million (BRL 327.5 million) to CAB Cuiaba. In May 2016, the local government announced it would intervene in the management of the concession, as the private sponsors were not fulfilling their contractual obligations. However, in December 2016 Cab Ambiental announced it reached a new agreement with the municipality.