Limeira Water and Wastewater

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In June 2005, the Limeira Municipal Council (Prefeitura Municipal de Limeira) awarded a 30 year contract to rehabilitate, operate and transfer the water and sewerage infrastructure services of Limeria (Servico de Agua e Esgoto do Municipio de Limeira –SAAE) to Lyonnaise des Eaux and CBPO. The Limeira Water and Waste Water project provided water and sewer services in Limeira (State of Sao Paulo), serving a population of 250,000. Aguas de Limeira was responsible for rehabilitating and expanding Limeira's water network, increasing capacity (especially for the treatment of domestic and industrial wastewater), increasing efficiency through operational improvement, and upgrading equipment and expanding the system to new customers. Aguas de Limeira SA was formed by SUEZ (formerly Lyonnaise des Eaux), 50%; and Lumina Engenharia Ambiental, a subsidiary of Odebrecht SA, 50%. The project required the company to invest an estimated US$71 million during the first five years. The sponsor was to provide US$4.8 million in equity and US$25.3 million were to be provided by cash generation. The 30-year contract aimed to bring in annual revenue of about US$20 million. The contract established that Drinkable water production should increase 25% during the first year of the contract, and 95% of the city's population should have clean water within five years. The tariff was initially set at US$1.25 per cubic meter of water, and the contract established tariff adjustment mechanisms. This project was Brazil's first private water and sewer service concession. The annual investments undertaken by Aguas de Limeira, year by year were: 1995 – US$ 5.4 million (R$ 5.2 million) 1996 – US$ 3.4 million (R$ 3.5 million) 1997 - US$ 2.6 million (R$ 2.9 million) 1998 – US$ 2.5 million (R$ 3 million) 1999 – US$ 0.8 million (R$ 1.5 million) 2000 – US$ 2.3 million (R$ 4.4 million) 2001 – US$ 1.9 million (R$ 4.3 million) 2002 – US$ 2.9 million (R$ 8.5 million) 2003 - US$ 3.1 million (R$ 9.3 million) None