Sao Geraldo do Araguaia Water and Wastewater Services

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In May 2005, the municipality of Sao Geraldo do Araguaia, in the state of Para, Brazil, awarded a 30-year rehabilitate, operate and transfer contract for its water and sewage infrastructure to the Brazilian company Saneatins, a joint-venture of private sponsors (76.52%) and the state of Para (23.84%). The private participation in Saneatins was evenly split between Foz do Brazil (subsidiary of Odebrecht) and EMSA (these two companies created the holding Foz Centro Norte to represent their interests in Saneatins). In 2005, the town of Sao Geraldo do Araguaia had a population of 27,303. The concession contract established that Saneatins had the right to be reimbursed by the investment expenditures undertaken or exchange the investment amount for the shares of Companhia de Saneamento de Sao Geraldo do Araguaia. In 2008, Saneatins acquired all shares in the company for US$ 1.7 million (BRL 3 million). The concession was awarded through an open competitive tender. No information was available on the number of final bidders. Information on investment commitments was also not available.