SÃO PAULO, Sept. 20, 2018
/PRNewswire/ -- Companhia de Saneamento Básico do Estado de
São Paulo – Sabesp ("Company" or "Sabesp"), pursuant to the
provisions of article 157, § 4, of Law No 6,404/76 as well as with
the provisions of CVM Instruction No 358/02, informs its
shareholders and the market in general that the signing of a
Protocol of Intentions (Protocolo de Intenções) between the
City of Guarulhos, the Government of the State of São Paulo and the
Autonomous Service of Water and Sewage of Guarulhos (Serviço
Autônomo de Água e Esgoto de Guarulhos – SAAE), with Sabesp as
a consenting intervening party, is scheduled for tomorrow,
September 21, 2018, with the
following purposes:
- Formalize the intention of the signatory parties to the
negotiation of the necessary conditions to the associated
management of the services, as to comply with the metropolitan and
regional directives, in the form of the applicable legislation;
and
- Express the interest of the City and the State in attributing
to Sabesp the provision of services of water supply and all the
scope of sewage services not included in Contract No 056/2014
(partial sanitary sewage public-private partnership - PPP)
previously concluded by the municipal administration, which can be
reduced or altered in order to comply with the metropolitan
directives set forth by the State of São Paulo.
The Protocol of Intentions (Protocolo de Intenções)
will, once formalized, also determine that:
- The Municipal Executive (Poder Executivo Municipal) will
have to send to the Municipal Chamber (Câmara Municipal) of
Guarulhos, within 20 (twenty) days, a Proposed Bill for a Municipal
Law (Projeto de Lei Municipal), in order to, at least, (i)
authorize the conclusion of a Technical Cooperation Agreement
(Convênio de Cooperação Técnica) between the City of
Guarulhos and the State of Sao
Paulo, thereby setting forth the integration of the planning
and execution of the services of water supply and sewage service of
Guarulhos; (ii) acknowledge the Regulatory Agency for Sanitation
and Energy of the State of São Paulo (ARSESP - Agência Reguladora
de Saneamento e Energia do Estado de São Paulo) as the regulatory
and oversight entity for the public basic sanitation service of the
City of Guarulhos; and (iii) authorize the conclusion of a Public
Service Agreement (Contrato de Prestação de Serviços
Públicos) between the City of Guarulhos, the State of São Paulo
and Sabesp; and
- The signatory parties commit to using their best efforts in
order to sign the Technical Cooperation Agreement (Convênio de
Cooperação Técnica) and the Public Service Agreement
(Contrato de Prestação de Serviços Públicos) with Sabesp
within 90 (ninety) days of the signing of the Protocol of
Intentions (Protocolo de Intenções).
The provisions of the Protocol of Intentions (Protocolo de
Intenções), will remain in effect for 4 (four) months or up to
the conclusion of the definitive documents, whichever takes place
first.
The terms for contracting Sabesp, which are subject to changes
throughout the effective period of the Protocol of Intentions
(Protocolo de Intenções), are based on the following:
- Concession of service of water supply and part of the sewage
service of the city;
- Investments by Sabesp of approximately R$1.7 billion during the contract in the city
exclusive systems and in the metropolitan systems to serve
Guarulhos, in addition to the transfers of resources for
supplementary investments to be made by the City Hall
(Prefeitura Municipal) of Guarulhos; and
- Judicial agreement to suspend the payment of the City debt with
Sabesp of about R$3.2 billion and the
proportional amortization of its value until the end of the term of
the service agreement.
The content proposed in the to-be-signed Protocol of Intentions
(Protocolo de Intenções) replaces the conditions previously
negotiated with the City and disclosed in the Material Fact of
August 28, 2017.
The signing of the Protocol of Intentions (Protocolo de
Intenções) will be confirmed as soon as it takes place, whereas
the conclusion of the judicial agreement and of the service
agreement will depend on the prior approval by the Board of
Directors of Sabesp, as well as by the Legislative Municipal
Chamber (Câmara Legislativa do Município) of Guarulhos.
The company will keep the market informed of any developments
related to the subject matter of this Material Fact.
IR Contacts:
Mario Arruda
Sampaio: (55 11) 3388-8664
(maasampaio@sabesp.com.br)
Angela Beatriz Airoldi: (55 11)
3388-8793 (abairoldi@sabesp.com.br)
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content:http://www.prnewswire.com/news-releases/sabesp-material-fact-300716623.html
SOURCE Sabesp (Companhia de Saneamento Básico do Estado de São
Paulo)