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Investor Presentaiton

PANORAMA OF THE PRIVATE SECTOR'S PARTICIPATION IN SANITATION 2021 A NEW SOCIAL AND ECONOMIC FRONTIER FOR BRAZIL Cachoeiro de Itapemirim (ES) Full Concession This is one of the first municipalities in the country to assign the management of water and sewage services to the private sector, in 1998. Since the beginning of the conces- sion, over BRL 429 million have been invest- ed in works, expansion, improvements and modernization of services. Today, the city is below the national average of losses, with 22.51%. Before the concession, the cover- age of the treated water network in the urban area was 87%, while losses exceeded 56%. Only 5% of the houses in the urban area had sanitary sewage systems. The sewage treat- ment system was non-existent, while some 21 million liters of sewage were poured into the Itapemirim River every day. Today, some 193,000 inhabitants in the ur- ban area of the municipality have sewage collection service. Of the total sewage col- lected, 98.15% is treated. The treated water supply reaches 100% of urban homes. Through a new amendment to the conces- sion contract, valid from May 2019, BRK Ambiental began to serve communities out- side the urban perimeter. Until then, these communities did not have water supply services, water being supplied exclusive- ly by water tankers. In total, 24 kilometers of water and sewage networks were built to connect these communities with public sewage lines. In 2012, the concessionaire made itself self-sustaining in energy after the con- struction of the Small Hydro Power Plant - PCH Ilha da Luz at WTP João Goulart, ensuring the system's energy and opera- tional efficiency. The concessionaire maintains a new in- vestment programme, which began in 2018 and will run until 2022, providing for the modernization and expansion of the water supply and sanitary sewer systems in all neighborhoods and districts of the municipality, the total investment coming to BRL 30 million. This March, it was re- certified based on the standards and re- quirements of: ISO 14001:2015 (Environ- mental Management Systems) and ISO 9001:2015 (Quality Management System) for a new three-year cycle, in addition to being certified to ISO 45001:2018 (Inter- national Standard for Occupational Health and Safety Management System) which focuses on improving performance in terms of Occupational Health and Safety. Ribeirão Preto (SP) Sewage Concession In 1995, sewage concessionaire GS Inima Ambient became the manager of sewage treatment in the city that, at the time, had 450,000 inhabitants (and just 2% of domes- tic sewage treatment, through a treatment pond in the district of Bonfim Paulista). With a current population of about 700 thou- sand and with a sewage network covering 98% of the municipality, Ribeirão Preto is in two different rankings of best cities for san- itation in Brazil: that of the ABES and that of the 'Trata Brasil' Institute. With the uni- versalization of sewage treatment, the con- cessionaire also ensured the clean-up of the Pardo River watershed. The company is re- sponsible for the revitalization of waterways in the region, which, until 2002, received dis- charge volumes equivalent to a daily load of 27 tonnes of raw organic matter. In 2011, the concessionaire also became the first company in the country to implement a biogas power generation system using sludge from the sewage treatment process. The project is doubly ecological because it also extracts biogas to be burnt as fuel. This prevents direct emission into the at- mosphere, thereby minimizing the emis- sion of greenhouse gases. It is a renewable, clean and responsible source of energy, which accounts for some 60% of the ener- gy needed for the operation of the sewage treatment plant. The daily volume of biogas comes to about 7,000 m3, which allows the production of 15,000 kWh/day, thereby making sure of the energy efficiency of STP Ribeirão Preto. 36 37
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