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Investor Presentaiton

PANORAMA OF THE PRIVATE SECTOR'S PARTICIPATION IN SANITATION 2021 A NEW SOCIAL AND ECONOMIC FRONTIER FOR BRAZIL Future tenders Amapá With modelling from the Brazilian Nation- al Development Bank (BNDES), the tender process for the full concession of water and sewage services in the urban areas of the 16 municipalities of the State of Amapá has now been scheduled for September, and shall have bids that combine lower pric- es and higher grant value. The services are currently provided by Caesa, a state-owned sanitation company. At present, only one in three inhabitants of the state has access to running water, while sewage collection is limited to 7.1% of a to- tal population of 750 thousand people. This shall be the first major tender process for the sanitation sector in the North of the country, with a strong impact upon society and upon the environment. The expected investments reach a total of BRL 3 billion during a concession period of 35 years (of which BRL 984 million shall be in the first five years). Alagoas The tender for a new concession in the state of Alagoas has been pencilled in for the first quarter of 2022. The proposal is that there shall be two blocks of municipal- ities, with an expected investment of BRL 3 billion, and with 2.2 million people benefited. Rio de Janeiro (Block 3 of Cedae) The Government of the State of Rio de Janei- ro intends to hold a tender process for what is known as Cedae Block 3, a remnant from the tender process carried out in April, by the end of 2021. This block initially had six mu- nicipalities and part of the capital, but other cities have already informed that they would like to take part, considering the success of the first tender. It is estimated that this new tender shall make feasible an additional in- vestment of BRL 3 billion for the State. Being modelled or with undefined time frame The tender for concession of services cur- rently provided by Corsan in the state of Rio the model, which can be changed to the pri- Grande do Sul is awaiting a decision about vatisation of the company, as has already been suggested by the State Government. The BNDES calculates that this tender shall require an investment of BRL 3 billion. GRAPH 22 Map of projects being structured by BNDES and planned investments Source: BNDES and BNDES and news published in the press Amapá BRL 3.0 billion Porto Alegre (RS) BRL 2.2 billion Tenders planned for 2021 Tenders planned for 2022 A similar debate is unfolding in Minas Gerais. This State is, in any case, moving ahead with its process for regionalisation (establishment of blocks of municipalities). Porto Alegre, the capital of the Southern state of Rio Grande do Sul, is preparing a tender for sanitation services. Initially scheduled for 2021, this tender also de- pends on a decision made by the City Hall. BNDES studies for the concession have al- ready been completed, and the estimated investment is BRL 2.17 billion. Ceará BRL 6.4 billion Paraíba Project being strctured Alagoas Saneamento Block B and C To be defined Rio de Janeiro Block 3 Project being strctured Rio Grande do Sul To be defined The State of Ceará also has its concession project already drawn up by the BNDES for Fortaleza, the state capital, and also for the Cariri region. The initialexpectations are that the invitation to tender shall be brought out later in 2021, with an expected invest- ment of BRL 8.6 billion. The tenders for Rondônia and Acre depend on the participation of their respective cap- itals, to be confirmed. 64 44 65
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