Cab Guaratingueta Sewerage System

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In June 2008, CAB Ambiental signed a 30 year contract with municipal government of Guaratingueta in the state of Sao Paulo to upgrade and operate their sewerage system. Specifically, the project aimed to upgrade sewerage collection levels to 100% by 2020 and sewerage treatment levels to 100% by 2024. In 2008, Guaratingueta, a municipality of 116,000, had sewerage collection levels of 85% and sewerage treatment levels of 29%. Cab Ambiental formed CAB Guaratingueta as a special purpose vehicle for the project. The contract was awarded to Cab Ambiental in March 2008 by the municipal government of Guaratingueta. Further bidding information was not available. CAB Guaratingueta was to invest 65 million reais (US $39.6 million) to construct new sewage treatment plants, new secondary and main pipeline networkds, new sewage pumping systems, and to replace damaged networks. In January 2012, a US$ 9.8 million (BRL 19.2 million) loan was granted to CAB Piquete by the state-owned bank BNDES to finance the company's investment. Figures converted based on the market rate, period average for 2008 published by the IMF.