Mirassol Water and Sewage Concession

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In January 2008, the company Sanessol began operating the municipal Mirassol Water and Sewerage facility in Mirassol city, Sao Paulo state for a 30 year period. Under the terms of the concession contract, Sanessol was to improve water distribution, sewage collection and sewage treatment levels to cover 100% of Mirassol’s population. Mirassol had a population of 55,000 residents in January 2008. At the time of operation, the Mirassol facility only treated 3% of sewage collected. Sanessol was a special purpose vehicle comprised of CAB Ambiental [Brazil] and Enops Engenharia Ltda [Brazil]. The concession contract was awarded to Sanessol by the municipality of Mirassol. However, no further information on tendering was publically available. The contract specified that R 47.5 million (US $22.5 million) was to be invested by Sanessol over the 30 year concession period. The investment program included upgrading existing sewage networks and a new sewage treatment plant. Figures converted based on the market rate, period average for 2008 published by the IMF.