Campos Water Company

active

In September 1996, the municipal government of Campos dos Goytacazes awarded Aguas do Paraiba a 30 year contract to provide and expand water and sewerage services. The company took over the water and sewerage services in September 1999, after a favorable resolution of a legal dispute where the State government of Rio de Janeiro contested the right of the municipal government of Campos to offer the public water and sewage services as full concession to a private company. At the time it started operating, Aguas do Paraiba served a population of 350,000 in the municipality of Campos dos Goytacazes in Rio de Janeiro. Aguas do Paraiba was a special purpose vehicle (SPE –Sociedade de Proposito Especifico) formed by Developer SA, Queiroz Galvao, Carioca Engenharia, Construtora Cowan SA and Trana Construcoes Ltda (part of EIT –Empresa Industrial Tecnica- group). Aguas do Paraiba committed to invest US$ 66.6 million (R$ 120 million, 1999 value). The company raised US$ 19.8 million (R$ 35 million) in financing from the state-owned development bank, BNDES in 2000. As of 2003, Aguas do Paraiba had already invested US$24.7 million (60.26 million reals). Since it started operating the system (September 1999), the company expanded the water treatement capacity from 600 liters/second to 1,200 liters/second, expanded the water provision by 20% and approximately 95% of the population had access to potable water. Aguas do Paraiba is a member of grupo Aguas do Brasil, which operates three other concessions through Aguas de Juturnaiba, Aguas do Imperador and Aguas de Niteroi. The annual investments undertaken by Aguas do Paraiba, year by year were: 2000 – US$ 4.4 million (R$ 8.6 million) 2001 – US$ 11.4 million (R$ 25.3 million) 2002 – US$ 4.1 million (R$ 12 million) None