Sustainability r e p o r t - Sabesp

Sabesp started to transferwater loss reductiontechnology to other StatesCorporate Water Loss Reduction ProgramEC8 Our objective is to accelerate the reduction of water losses in the longrun. The program is valid for 11 years (2009-2019) and its goal is to reducethe revenue loss rate from 29.5% (Dec 2007) to 13% when the program isterminated, a rate consistent with international standards.Budgeted investments for the period total approximately R$3.4 billion (Oct2007 reference amounts), used especially in the replacement of watermains andservice pipes, compartmentalization (reducing water pressure), and replacementof water meters.In 2009, we invested R$261 million in this program, of which R$43 millionwas allocated to expenses and R$218 million was used in investments, and wemanaged to obtain a water revenue loss rate of 26 percent, a level significantlylower that the average nationwide revenue loss rate of approximately 40%.Reduction in the period 2007-2009, of 5.9 percentage points,in the Revenue Loss Rate corresponds to a decrease in real lossvolume of 174 million cubic meters, a volume equivalent to thesupply to a population of 1.7 million inhabitants over a oneyearperiod, equivalent to the population of Campinas and Osasco together(reference: IBGE, 2007). Te challenge for 2010 is to reach a revenue loss rateof 24 percent.The importance and the efficiency of the Sabesp’s corporate loss reductionprogram is evidenced by the significant funding raised and the recognition of ourpartners and international entities. We have already received for this programthe first tranche of the R$560 million financed by the National Bank for Economicand Social Development (BNDES). We are also negotiating with the JapanInternational Cooperation Agency (JICA) financing amounting to US$480 million.In 2010, we will organize the most prestigious event on loss reduction in theworld, the International Water Loss Reduction Conference, organized by theInternational Water Association (IWA).In addition, we started to transfer water loss reduction technology to other statesand we entered into an agreement with Companhia de Saneamento de Alagoas(Casal) that will generate revenue estimated at more than R$25 million for thenext five years. We have already been contacted by other companies interestedin our technology, and our next challenge will be to enter into new agreements in2010, as a new source of revenue for the Company and promoting developmentin other Brazilian regions.Table 9: Corporate loss reduction program goals33.0 34.032.4 31.956329.5 27.9 28.026.0 24 22 21 201817 1615547 520 511467 436389 402360 342 324 307 290 272 255 239 221 21114 13IPF – Water loss (%)2003 2005 2007 2009 2011 2013 2015 2017 2019IPDt - Water loss perconnection(liters / (connection x day))Household system connection - Clean Wave.42 Relatório de Sustentabilidade 2009 43