SABESP Signs Agreement With the Municipality of Santos

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SABESP

Sep 29, 2015, 11:25 ET

SAO PAULO, Sept. 29, 2015 /PRNewswire/ -- Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (BM&FBovespa: SBSP3; NYSE: SBS), pursuant to CVM Instruction 358 of January 3, 2002, Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP ("Company" or "SABESP") hereby announces that, on this date, signed a 30-year Water and Sewage Service Contract with the Municipality of Santos, the third largest municipality operated by the Company.

The main highlights of the negotiation are:

  1. Agreement to settle the municipality's debt with Sabesp;

  2. Share of ICMS tax as guarantee for receivables from service provided to municipal owned properties;

  3. Commitment to invest approximately R$450 million in Santos;

  4. Transfer of funds to the municipality, in order to execute investments in environmental sanitation and infrastructure works in the city. The funds will be transferred in the following way:

i. R$130 million, in five annual installments; and

ii. 0.53% of the revenue obtained by the Company by proving service in Santos, net of Cofins and Pasep taxes, to be transferred on a quarterly basis and for the duration of the agreement.

IR Contacts:
Mario Arruda Sampaio: (55 11) 3388-8664 ([email protected])
Angela Beatriz Airoldi: (55 11) 3388-8793 ([email protected])

SOURCE SABESP

Related Links

http://www.sabesp.com.br

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