Iguá signs contract and begins operating in Rio de Janeiro

On August 12th, Iguá Saneamento, represented by Iguá Rio de Janeiro SA, and the government of the state of Rio signed a concession contract for basic sanitation services in the west of the capital as well as the municipalities of Paty do Alferes and Miguel Pereira, located in the south-central part of the state. The 35-year contract is for the concession for block 2 of the State Water and Sewage Company (Cedae) to provide water distribution and sewage collection and treatment servicesfor approximately 1.2 million people.

With the signing, the assisted operation period, scheduled to last six months, will begin. In this phase, the concessionaire will accompany Cedae, which will continue operating the services. After this period, Iguá, the first portfolio company of asset manager IG4 Capital, will definitively assume the operation.

Block 2 comprises the neighborhoods in the west part of the city of Rio de Janeiro including Anil, Barra da Tijuca, Camorim, Cidade de Deus, Curicica, Parish, Gardenia Azul, Grumari, Itanhangá, Jacarepaguá, Jardim Sulacap, Joá, Bargain, part of Praça Seca, Recreio dos Bandeirantes, Tanque, Taquara, Vargem Grande and Vargem Pequena, in addition to the municipalities of Paty do Alferes and Miguel Pereira.

In Rio de Janeiro, Cedae will continue to be responsible for collecting and treating raw water, whereas Iguá will be responsible for water distribution and sewage collection and treatment services. In the municipalities of Paty do Alferes and Miguel Pereira, the concessionaire will carry out the collection, treatment and distribution of treated water, in addition to sanitary sewage services. According to Iguá, the project provides for other direct and indirect benefits to the population and the environment, including the conservation of water sources as well as improvements in quality of life, health and well-being.

The investments foreseen in the notice are around R$ 2.7 billion in Rio de Janeiro. In addition, Iguá will make a payment of approximately R$7.3 billion for the grant, the first installment of which has already been paid to the State.