Industry context

According to a study by the National Confederation of Industry (CNI), which is based on official data on industry projects, basic sanitation services in Brazil will achieve universalization after 2050, more than 20 years later than the date projected by the National Basic Sanitation Plan (PlanSab).

The plan, which was regulated in 2013 by the Ministry of Cities, through the National Secretariat of Environmental Sanitation, contains investment guidelines so that the target established by the federal government is achieved: universalization of water service (100%) by 2033, with around 90% of households being served by sewer systems by 2043.

PlanSab plans for an integrated approach of basic sanitation services on four fronts: potable water supply; sanitary sewerage; urban cleaning and solid waste management; and draining and management of urban storm water.

To achieve results, private companies have operated in the industry since 2004 through full or partial concessions, or through public-private partnerships. Moreover, various initiatives have been proposed by the government.

However, even with the launch of the Growth Acceleration Program (PAC) in 2007, which was aimed at promoting execution of major social, urban, logistics and energy infrastructure works, the country has made little advancement. According to 2014 data from Instituto Trata Brasil, which looks at industry works, of the 330 relevant sanitation projects monitored in the PAC, only 26% of sewer and 33% of water projects were concluded.



According to a study by the CNI – based on data up to 2013 from the National Household Sample Survey (PNAD) – the volume of households served by sewer systems in Brazil went from 40% to 48% from 1996 to 2006, with this indicator reaching 58% from 2007 to 2013.

In relation to the water system, households served went from 76% to 84% from 1996 to 2006. Progress over the next seven years (with the creation of the PAC) was just one percentage point (85%).

Based on this study, investment would need to be doubled to meet the PlanSab target. That is because at the current pace, targets established would only be achieved in 2043 (water services) and 2053 (sewer services). In 2009, for example, sanitation expenditures reached BRL10 billion, but they have remained at this level since then.


Households served by sewer systems (%)

Source: National Confederation of Industry (CNI). Survey was not done in 2000 and 2010.

Households served by water supply (%)

Source: National Confederation of Industry (CNI). Survey was not done in 2000 and 2010.

Sanitation expenditures (BRL billions)

Source: National Confederation of Industry (CNI). Constant numbers based on the Extended National Consumer Price Index (IPCA), with information from Brazil’s National Sanitation Information System (SNIS, its acronym in Portuguese).


One reason for the lack of resources is the difficulty companies responsible for sanitation, which are mostly state-owned, have to reduce losses. According to the CNI, 37% of water distributed is not received, which hinders collection of resources to continue investing.

Bureaucracy in approving funding is also one of the causes of the sector’s poor performance. According to this same survey, it can take up to 22 months from the time a sanitation project is submitted until funding is made available.

The goal of PlanSab is to achieve universalization of water service, reaching 100% by 2033

Brazil: low water and sewage coverage and treatment

The low level of investment by public companies has created a significant deficit in water and sewage coverage and treatment.

Water coverage (% of population)

Source: SNIS 2014.

Sewer coverage (% of population)

Source: SNIS 2014.

Rate of losses in distribution (% of volume available)

Source: SNIS 2014.

Sewage treatment (% sewage generated)

Source: SNIS 2014 (National Sanitation Information System).

Brazil: sanitation deficit

Water service

Despite the country having an urban service rate of 93%, only 59% is considered to be adequately served.

Source: PNAD (IBGE, 2013), SNIS (SNSA/Ministry of Cities, 2013).

PlanSab

1. Precarious service: prolonged intermittency, water that does not meet potability standards, use of cisterns, lack of indoor plumbing.

Sanitary sewage

Low rates of sewage collection and treatment.

Source: PNAD (IBGE, 2013), SNIS (SNSA/Ministry of Cities, 2013).

PlanSab

2. Precarious service: rudimentary septic tank and collection not followed by treatment.


In 2015, the private sector began to serve 304 municipalities, up by 2.37%

In addition to making achievement of national targets unfeasible, the lack of investments in sanitation results in damages to the health system, with a high number of people who are ill, leaving companies with absences at work and a lack of infrastructure for investments.

Nevertheless, more and more space is opening up in the sector for private companies to act through (full or partial) concessions or through Public-Private Partnerships (PPPs) to help the government in improving these sanitation deficits.

Division of companies in the sector
Companies Total municipalities in 2014 Total municipalities in 2015
State 3,891 4,012
Municipal 890 890
Private 297 304
Source: Brazilian Association of Private Concessionaires of Public Water and Sewage Services (ABCON) and Brazilian Association of State Sanitation Companies (Aesbe).

Regulatory framework

Law No. 8,987, dated February 13, 1995 | Covers the concession regime and permission to provide public services, as established in article 175 of the Federal Constitution.

Law No. 11,079, dated December 30, 2004 | Institutes general rules for bids and contracting of public-private partnerships under the auspices of government administration (federal, state and municipal governments and the government of the Federal District).

Law No. 11,107, dated April 6, 2005 | Covers general rules for contracting public consortiums at the federal, state and municipal levels and by the Federal District.

Law No. 11,445, dated January 5, 2007 | Establishes national basic sanitation guidelines. Also defines federal government rights and obligations to establish regulation and plan policies for the sector.

National Basic Sanitation Plan (PlanSab) | Established by Law No. 11,445, it consists of planning based on the strategic vision of Basic Sanitation in Brazil.

Consolidated Company performance

Aegea ended the fiscal year with operations in 43 municipalities, in which it serves 1,365,526 water and sewer economies daily, accounting for a 9.5% increase compared to the previous year, when the total was 1,246,845.

This growth is the result of the acquisition of sanitary services concessions in São Francisco do Sul (SC), Timon (MA), Holambra (SP) and Camboriú (SC), controlled by the Aegea company, and in Paranatinga (MT), Pimenta Bueno (RO) and Rolim de Moura (RO), controlled by the Nascentes do Xingu holding (see more).

Aegea Growth

Municipalities served

Population served (millions)

1. If seasonality is considered for the municipalities served by Prolagos, the population served could reach 3.7 million.

Number of economies served (thousands)


With a larger customer base, the billed volume of water was 19.9% higher year-over-year, while billed sewer volume grew by 3.2%.

Billed volume (thousands of m3)
  2015 2014 Variation (%)
Water 129,683 108,205 19.8
Sewer 74,197 71,904 3.2

To maintain the pace of growth and seize opportunities in 93% of the Brazilian municipalities still served by local governments or state companies (see more), the Company invests in constantly finding gains in operational efficiency and savings of scale.

In this sense, it is worth mentioning the work of the Efficiency and Technology Center, which develops the Loss Management and Control System, and of the Loss Management Program, which covers actions integrated into the commercial, engineering and social responsibility areas.

As a result, Aegea is at 36.7% in the consolidated average rate of loss in distribution, which is less than the national average (39%) and includes real and apparent losses. The only reason the Company did not have more significant performance was because of the rate of loss of newly acquired companies, which is usually higher than already consolidated companies. However, insofar as the Company’s standard of management is applied to each operation, the rate falls, as can be seen on page 43!!!, which shows operational performance by operation. For instance, the Águas Guariroba concessionaire had total distribution losses of 17% for the year.

In 2015, higher electricity costs impacted the sector at above the Company’s projections, due to extraordinary readjustments in prices by Brazil’s National Electric Energy Agency (Aneel) (see more). Nevertheless, consumption of Kwh per cubic meter of water produced and sewage treated dropped from 0.72 to 0.64, even when considering newly acquired companies.

Pricing structure

Price readjustments in 2015
Operation Municipality Readjustment (%)
Águas de Barra do Garças Barra do Garças

9.3 (1T) and 19.40 (3T)

Águas de Santa Carmem Santa Carmem

2.63

Águas de Nortelândia Nortelândia

2 adjustments of 10%

Águas de Confresa Confresa

6.58

Basic sanitation of Jangada Jangada

7.02 (1T) and 21.06 (3T)

Águas de Poconé Poconé

5.94 (1T) and 19.40 (2T)

Águas de Matão Matão

7.85

Águas de Campo Verde Campo Verde

4.24

Águas de Cláudia Cláudia

5.71

Águas de São Francisco Barcarena

5.32

Águas de Jauru Jauru

11.18

Águas de Primavera do Leste Primavera do Leste

6 adjustments of 2%

Águas Guariroba (Electricity) Campo Grande

8.35

Águas Guariroba (Annual) Campo Grande

10.36

Prolagos (Electricity) Arraial do Cabo, Iguaba Grande, São Pedro d’Aldeia, Cabo Frio e Búzios

7.5

Prolagos (Annual) Arraial do Cabo, Iguaba Grande, São Pedro d’Aldeia, Cabo Frio e Búzios

9.41

Águas de São Francisco do Sul São Francisco do Sul

4.89

Águas de Diamantino Diamantino

7.70

Águas de São José São José

7.29


Extraordinary readjustments approved in 2015:

Prolagos: May/15/2015. Revised by 7.5%.
Guariroba: May/29/2015: Revised by 8.35%.

Aegea makes constant investments in actions aimed at attaining gains in operational efficiency

Impact of the business

GRI G4-EC7

In 2015, Aegea and its controlled companies invested BRL339 million in infrastructure works, which included implementation of treatment stations, extensions of the water and sewer system and expansion of the sewage transport and treatment system.

Among the positive impacts seen are a lower incidence of illnesses related to lack of sanitation, reduced public health expenditures on the part of the government, greater collection of municipal taxes, appreciation of properties served by the supply and collection network and, finally, tourism stimulus.

Moreover, local development occurs through the economy, since the company works directly with job creation and gives preference to local suppliers, whenever possible.

Water

GRI G4-DMA Water

Aegea serves 3.5 million people in 43 municipalities every day. To bring water to all of these households, the companies withdrew over 218 million square meters of surface water (such as rivers and lakes) and groundwater (such as aquifers and artesian wells).

The Company operates in compliance with the law and removal of water does not significantly affect water sources. Funding is approved pending authorization from environmental agencies, according to feasibility and availability, in order to guarantee that the Company will meet the environmental resolutions and norms of the agencies responsible.

Total water withdrawn by source (m3/year) GRI G4-EC7
  Prolagos Guariroba Xingu
 

2014

2015

2014

2015

2014

2015

Surface water, including humid areas, rivers, lakes and oceans 35,515,384 37,053,368 48,123,936 41,925,095 6,963 16,290,083
Groundwater 0 0 39,388,464 41,002,534 16,929 37,444,723
Total water withdrawn by source 35,515,384 37,053,368 87,512,400 82,927,629 23,892 53,734,806

   Timon Matão São Francisco do Sul São Francisco
  2014 2015 2014 2015 2014 2015 2014 2015
Surface water, including humid areas, rivers, lakes and oceans   0 0 0 0 4,810,664 - -
Groundwater   18,963,648 5,160,000 9,132,301 0 0 4,660 5,032,657
Total water withdrawn by source   18,963,648 5,160,000 9,132,301 0 4,810,664 4,660 5,032,657

Focused on a more sustainable process, Aegea reuses water that would be discarded at Water Treatment Stations (WTSs)

During 2015, some units had a large increase in the total amount of surface water and groundwater and in the total volume of water removed. This amount is explained by the growth in the number of economies and in the number of units.


Total water discharge in 2015, by quality and destination GRI G4-EN22
UNIT Total volume of water discharged Destination Water quality – average efficiency Treatment method Water reused
DBO %
Prolagos 16,822,832 m3/year of treated sewage 1,383,563 m3/year – Hypersaline Lake;
3,765,894 m3/year – Hypersaline Lake;
6,435,173 m3/year – Hypersaline Lake;
2,619,122 m3/year – Una River;
2,619,081 m3/year – Marina Channel
75 Various treatment systems, according to legal requirements of discharge standards  26,280 m3/year
Guariroba 29,163,369 m3/year of treated sewage River 72 UASB, ICEAS 409,750 m3/year
Mirante 37,986,825 m3/year of treated sewage River 88 Main WWTSs:
Extended aeration activated sludge
262,800 m3/year
Matão 120,778 m3/year of treated sewage São Lourenço do Turvo River 82 Extended aeration activated sludge 0
Campo Verde (Xingu) 245,222 m3/year of treated sewage River 72 UASB, followed by activated sludge and filter 0
Cláudia (Xingu) 164,908 m3/year of treated sewage Leda Stream 67  - 0
Diamantino (Xingu) 31,483 m3/year of treated sewage Caju River 79 Facultative lagoon 0
Guarantã (Xingu) 65,596 m3/year of treated sewage Stream 84 Activated sludge 0
Pedra Preta (Xingu) 39,435 m3/year of treated sewage Águas Claras Stream 62 Rock filter 0
Porto Esperidião (Xingu) 12,974 m3/year of treated sewage River   Facultative lagoon followed by maturation pond 0
Primavera do Leste (Xingu) 1,365,525 m3/year of treated sewage River 74 Australian stabilization pond system
Anaerobic lagoon followed by facultative lagoon and three maturation ponds
0
Sorriso (Xingu) 621,486 m3/year of treated sewage River 82 Activated Sludge, UASB reactor, gas filter 0
Other units have no WWTSs.

Reused water

In order to guarantee the sustainable use of natural resources and reduce losses across processes, Aegea reuses water used to wash Water Treatment Station (WTS) filters. It is stored in tanks, which also allow for rainwater to be collected and used. The resources, which would otherwise be discarded, therefore contribute to the city’s supply.

Moreover, the secondary Wastewater Treatment Stations (WWTSs) of Armação dos Búzios and tertiary WWTSs of São Pedro da Aldeia and Iguaba Grande work in partnership with local city halls to remove tanks of water, returning them for treatment. With these actions, 854,822 m3 of water were reused during the year, around 0.5%. GRI G4-EN10

Total volume of water recycled and reused GRI G4-EN10
  Volume (m3/year)
Águas de Barra do Garças 65,700
Águas Guariroba 409,750
Águas do Mirante 262,800
Águas de Poconé 6,844
Águas de Porto Esperidião 8,213
Águas de Primavera 33,763
Prolagos 26,280
Águas de São Francisco do Sul 41,472
Total 854,822

Energy

GRI G4-EN3 | G4-EN6 | G4-DMA Energy

In 2015, the Company saw a spike in energy costs – totaling around 86.4% – due to a price readjustment by Brazil’s National Electric Energy Agency (Aneel). Despite this, avoided Consumption of Kwh reached a total of 3 million, versus 199,798 kWh consumed. GRI G4-EN3 | G4-EN6

Energy Consumed (kWh) Avoided Consumption (kWh) (%)
Aegea (total) 199,798,476 3,300,566 1.7
Águas Guariroba 81,622,556 1,734,988 2.1
Prolagos 44,737,255 15,200 0.0
Águas do Mirante 16,353,139 591,328 3.6
Nascentes do Xingu 32,252,982 831,802 2.6
Águas de Matão 10,124,645 127,248 1.3
Águas de São Francisco 2,827,908  0 0.0
Águas de São Francisco do Sul 2,780,360  0 0.0
Águas de Timon 9,099,631  0 0.0

Biodiversity

GRI G4-DMA Biodiversity | G4-DMA General

Aegea is concerned with preserving the environment and maintaining a fully functioning ecosystem, which is why water treatment is done at all units, pursuant to federal, state and municipal environmental legislation and in accordance with quality standards.

Description of direct and indirect impacts as a result of Aegea activities GRI G4-EN12
Actions Impacts
Direct Indirect
Implementation of a Sanitary Sewer System Better rates of quality in water courses Improved quality parameters for the water resource, with the ability to increase the number of species
Substantial reduction in the effluent's pathogenic agents With the better quality of the water resource, restoration of ecological processes can occur in the aquatic ecosystem and in associated ecosystems
Interventions in permanent preservation areas to implement an outfall and conversion of natural habitat to implement the structures necessary for collection, transport and treatment of sewage Occupation of landfills for depositing sludge from the WWTS. At some Units (Guariroba), this sludge is being used to recover degraded areas
Implementation of Water Supply System Quality of water supplied to the population, lowering the rate of waterborne illnesses  
Interventions in permanent preservation areas and conversion of natural habitat to implement the structures necessary for collection, treatment and distribution Occupation of landfills for
depositing sludge from the WTS
positive impacts  
negative impacts  

To guarantee monitoring and management of impacts, daily analyses are done of Araruama Lake (RJ) – covering a water surface of approximately 220 km2, making it the world’s largest permanent hypersaline lake ecosystem – and of the Una River (SP). Both were identified as habitats affected by disposal of the Company’s water and are considered protected areas. Other units rely on work to monitor watercourses that receive discharged water. Moreover, Aegea has specific initiatives to mitigate environmental impacts. GRI G4-EN26

In relation to fauna, an estimated 39 species of fish live in Araruama Lake, 31 in Saquarema Lake, 89 in the São João River basin, 48 in the Una River basin and 46 in the Ostras River basin. The São João River alone contains 32% of all of the inland water species in the state of Rio de Janeiro. In 2015, impacts were found on the fish, bird, mammal, reptile and amphibian species associated with riparian environments. GRI G4-EN26 | G4-EN12

To minimize the size of areas directly affected and conserve biodiversity, the Company invests in the introduction of new technologies – use of WWTSs, waste treatment and disposal, and others – as well as in other initiatives and in environmental education and training. GRI G4-EN12

Extent of the mitigation of environmental impacts of products and services GRI G4-EN27
Theme All impacts caused by existing environmental products and services Specific initiatives implemented in the
period to mitigate environmental impacts
Water use Removal of water (catchment) Loss reduction program and reuse
Emissions Energy consumption Energy Efficiency Program
Use of fossil fuel At the units Águas de Matão and Mirante,
the fleet is supplied with ethanol (95%)
Effluents Collection, treatment of sewage Growth in the rate of collection and treatment coverage

During the year, over BRL3 million were spent on treatment and disposal of waste, with BRL2.85 million invested in environmental prevention, which involves education projects and external management services.

Investments in and expenditures on environmental protection GRI G4-EN31
Costs of waste disposal, treatment of emissions and remediation (BRL)
Waste treatment and disposal  3,709,005
Expenditures on equipment, maintenance and operational services and materials, in addition to personnel expenses for this purpose  1,912,888
Total 5,621,893

Prevention and environmental management BRL
Environmental education and training 2,845,782
External environmental management services 7,200
Total 2,852,982
Penalties and sanctions

Over the year, 26 fines for non-compliance with environmental laws and regulations were received, totaling BRL5,367,250. In this same period, there were 27 non-monetary sanctions. All processes are in the administrative discussion phase, with the causes originating these fines now being compliant. GRI G4-EN29 | G4-DMA Compliance

Operational performance

GRI G4-DMA Assessment | G4-DMA Supplier human rights assessment

With high operating performance, Aegea seeks to be recognized as the best company in the development and management of sanitation business in Brazil. To do this, the Company works to guarantee ethical and transparent activities, through its Occupational Safety, Health and Environment Policies.

Furthermore, 100% of contracts include clauses related to human rights and they are subject to analysis and assessment in order to guarantee the best working conditions and development of the chain. Contracts establish prohibitions against child prostitution and forced labor, they contain anti-corruption items and they can be terminated in the event of non-complianc. GRI G4-HR1 | G4-HR9

The Company’s ethical and transparent action is based on the Safety, Health and Environment Policies

North Region

Águas de Timon

Aegea’s first concession in the Northeast Region, gained in 2015, Águas de Timon is responsible for water supply and sewage treatment services in the municipality of Timon (MA). The Company’s goal is to universalize the water supply among the population in the municipality’s urban zone within one year. To do this, an investment estimated at approximately BRL180 million will be made over the 30 years of the contract.

The concessionaire has a lab for physical and chemical analyses and an operations control center, allowing for remote control of equipment and for higher quality procedures.

Timon (MA)
Municipality served

Population served: 165,000
Water coverage percentage: 100%
Losses in distribution: 78.24%
Distribution energy efficiency rates: 0.40 kWh/m3
Default: 21.74%
Date of concession: 2015
Contract term: 30 years

Águas de São Francisco

Concessionaire responsible for water and sewage treatment services for the municipality of Barcarena (PA) since 2014. With a 30-year contract, Aegea intends to universalize water and sewage services for the municipality’s entire urban area.

Barcarena (PA)
Municipality served

Population served: 116,000
Coverage percentage: 43% water and 25% sewer
System length: 117 km water and 40 km sewer
Distribution energy efficiency rates: 0.55 kWh/m3
Default: 14.98%
Date of concession: 2013
Contract term: 30 years


East Region

Prolagos

Prolagos is responsible for basic sanitation services in the municipalities of Cabo Frio, Búzios, Iguaba Grande and São Pedro da Aldeia, and for supplying water to Arraial do Cabo; all of these municipalities are located in the Lagos region of the state of Rio de Janeiro.

This concession was the result of an international public contest, starting the concession in 1998 with a 25-year term. In 2011, this term was extended for another 18 years (to 2041). With this extension, targets for serving the urban area, originally set at 90% (water supply) and 70% (sewage treatment), were revised to 98% and 90%, respectively.

Since starting its activities, Prolagos has tripled the supply of drinking water (from 30% to 96.53%), with the rate of sanitary sewer service in the region going from 0% to 77.09%. These results are the result of an investment of over BRL609 million, which went to building five wastewater treatment stations and adding 147 kilometers to the collection system to treat 70 million liters of sewage/day. Two wastewater treatment stations were also built, along with 278 kilometers of water mains, with 2,239 kilometers added to the water distribution system.

Cabo Frio, Armação dos Búzios, São Pedro da Aldeia, Iguaba Grande and Arraial do Cabo (RJ)
Municipalities served

Population served: 391,000
Coverage percentage: 96.5% wate and 77.1% sewer
System length: 2,469 km water and 149km sewer
Losses in distribution: 30.2%
Distribution energy efficiency rates: 1.20 kWh/m3 water and 0.37 kWh/m3 sewer
Default: 8.40%
Execution of contract: 1998
Acquisition by Aegea: 2007
Contract term: 43 years (25 years + 18 year extension obtained in 2011)

Águas de Meriti

The first private consortium in the Baixada Fluminense region of the state of Rio de Janeiro, Águas de Meriti is made up of two specialized companies – Aegea and Conasa – and had already started activities in 2015 with the goal of collecting and treating 90% of sewage in São João de Meriti (RJ) within eight years.

The municipality has a population of 461,000 and a system that was built over 50 years ago, which is showing a series of problems, such as errors in sedimentation projects and leaking pipelines – the cause of most user complaints. Moreover, many stretches of the collection system are not connected to the sewer system.

In addition to improving the population’s quality of life, the Company intends to contribute to local development: 80 employees have already been hired and the plan is to increase this to 180 employees by 2017, not to mention contracting of workers for maintenance projects and to work on expanding the sanitary sewer system. Aegea did not register any operational metrics for this concessionaire for the year.


São Paulo Region

Águas do Mirante

Company established in 2012 through a Public-Private Partnership (PPP) to operate the entire sanitary sewer system in the municipality of Piracicaba (SP). With a 30-year contract, Águas do Mirante aims to raise the sewage treatment rate to 100% of the municipality. To do this, it relies on an investment of over BRL330 million, distributed as follows:

  • Expansion of the sewer system (253 km)
  • Replacement of the collection system (170.5 km)
  • Implementation of sewer branch lines (33,500 units)
  • Recovery and improvement of existing systems
  • Replacement of water meters
  • Construction and expansion of wastewater treatment station
  • Construction of 11 lift stations

To control losses and operational efficiency, the Company also installed an Operational Control Center, through which it is possible to control the functioning of wastewater treatment stations and lift stations and to promote property security of facilities.

Piracicaba (SP)
Municipalities served

Population served: 391,000
Coverage percentage: 100% sewer
System length: 1,360 km of sewer
Distribution energy efficiency rates: 0.36 kWh/m3 sewer
Date of concession: 2012
Contract term: 30 years

Aegea’s goal in serving the Piracicaba region is to raise the sewage treatment rate to 100% of the municipality

Águas de Matão

Concessionaire responsible for full management of basic sanitation services in Matão (SP) since 2014. The biggest challenge at the start of activities was to eliminate frequent occurrences of lack of water and reduce the rate of losses (which is currently at 50%).

The concession contract has a 30-year term and the targets for this period include construction of four reservoirs and one sewage lift station, drilling of two wells, implementation of four water pumps, expansion of the water distribution system by 22.5 kilometers, replacement of 52 kilometers of the water distribution system and implementation of 33.5 kilometers of the sewer system.

In early 2015, the São Lourenço do Turvo Wastewater Treatment Station began operating, and in just three months, it had already reached over 90% efficiency.

Matão (SP)
Municipality served

Population served: 81,000
Coverage percentage: 100% water and sewer
System length: 372 km water and 366 km sewer
Losses in distribution: 40.9%
Distribution energy efficiency rates: 1.10 kWh/m3 water and 4.06 kWh/m3 sewer
Default: 6.4%
Date of concession: 2013
Contract term: 30 years

Águas de Holambra

Concessionaire responsible for water and sewer services in Holambra (SP), serving a population of 13,000. Aegea did not register any operational metrics for this concessionaire for the year.

Center Region

Águas Guariroba

Since 2000, Águas Guariroba has managed collection, supply, production, treatment and drinking water distribution services, and the collection, removal, treatment and final disposal of sewage in Campo Grande, the capital of the state of Mato Grosso do Sul.

Campo Grande (MS)
Municipality served

Population served: 854,000
Coverage percentage: 99.9% water and 81.5% sewer
System length: 3,663 km water and 1,848 km sewer
Losses in distribution: 17%
Distribution energy efficiency rates: 1.01 kwh/m3 water and 0.16 kwh/m3 sewer
Default: 4.8%
Execution of contract: 2000
Acquisition by Aegea: 2005
Contract term: 60 years (30 years + 30 years with renewal in 2012)

West Region

Nascentes do Xingu

Created in 2012, Nascentes do Xingu is a holding company made up of Aegea and Grupo Dias, a Mato Grosso-based company operating in the energy, mining, sanitation and real estate development sectors. This unit is responsible for managing 24 concessions in Mato Grosso, one concession in Pará and three concessions in Rondônia.

In 2015, the holding was awarded concessions in Paranatinga (MT), Buritis (RO), Pimenta Bueno (RO) and Rolim de Moura (RO), going on to serve 827,000 people in 28 municipalities.

With headquarters in Campo Verde (MT), the holding also has offices in Cuiabá (MT), where the office of the president and the general legal counsel and communications offices are located; there are two regional offices – the North office, in Sorriso (MT), and the South office, in Primavera do Leste (MT) – facilitating strategic management with the geographic distance between all locations where it operates in mind.

Over the next few years, the goal is to serve 100% of the population with distribution of treated water and the quality of service provided.

Campo Verde, Carlinda, Claudia, Jangada, Jauru, Marcelândia, Nortelândia, Pedra Preta, Peixoto de Azevedo, Poconé, Primavera do Leste, Santa Carmen, São José do Rio Claro, Sorriso, União do Sul, Vera, Porto Esperidião, Barra do Garça, Confresa, Guarantã do Norte, Matupá, Diamantino, Sinop and Paranatinga (MT), Novo Progresso (PA), Buritis, Pimenta Bueno and Rolim de Moura (RO)
Municipalities served

Population served: 827,000
Coverage percentage: 99% water and 16% sewer
Distribution energy efficiency rates: 0.72 kwh/m3 water and 0.37 kwh/m3 sewer
Losses in distribution: 17%
Default: 6.1%
Date of concession: 2012
Contract term: 30 years

South Region

Águas de São Francisco do Sul

Awarded in 2015, Águas de São Francisco do Sul is responsible for supplying water and sanitary sewerage in the municipality of São Francisco do Sul (SC), as Aegea’s first operation in Santa Catarina. The contract has a 35-year term and the initial goal is to install a system and collect and treat 52% of sewage by 2022, gradually making advancement in subsequent years.

São Francisco do Sul (SC)
Municipalities served

Population served: 49,000
Coverage percentage: 88% water
System length: 416 km
Losses in distribution: 41%
Distribution energy efficiency rates: 0.52 kwh/m3 water
Default: 4.2%
Date of concession: 2014
Contract term: 35 years

Águas de Penha

Made up of Serrana Engenharia and Aegea, the concessionaire is responsible for supplying water and sanitary sewer services in the city of Penha (SC), population 29,000. The contract was executed in 2015 and has a 35-year term. The goal for the period is to implement the solution for water treatment in the short-term and the sewage collection and treatment system as of the fourth year of the contract. Operational metrics for the new concessions began in 2016.

Aegea plans to implement a short-term water treatment solution in the city of Penha

Águas de Camboriú

This concessionaire is responsible for water and sewer services for the city of Camboriú (SC). The company should serve the city’s population of 74,000. Aegea did not register any operational metrics for this concessionaire for the year.