SAO PAULO, Sept. 29, 2015 /PRNewswire/ -- Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (BM&FBovespa: SBSP3; NYSE: SBS), pursuant to CVM Instruction 358 of January 3, 2002, Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP ("Company" or "SABESP") hereby announces that, on this date, signed a 30-year Water and Sewage Service Contract with the Municipality of Santos, the third largest municipality operated by the Company.
The main highlights of the negotiation are:
- Agreement to settle the municipality's debt with Sabesp;
- Share of ICMS tax as guarantee for receivables from service provided to municipal owned properties;
- Commitment to invest approximately R$450 million in Santos;
- Transfer of funds to the municipality, in order to execute investments in environmental sanitation and infrastructure works in the city. The funds will be transferred in the following way:
i. R$130 million, in five annual installments; and
ii. 0.53% of the revenue obtained by the Company by proving service in Santos, net of Cofins and Pasep taxes, to be transferred on a quarterly basis and for the duration of the agreement.
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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SOURCE SABESP
