Sustainability r e p o r t - Sabesp

Small Hydropower Plants (SHPs)The first tender notice for the concession to private sector companies of the right to exploit theenergy potential of the Guaraú and Vertedouro Cascata Water Treatment Plants, by building smallhydropower plants (SHPs) was published in 2009. These plants will generate approximately 7 MWh –the first time this power model will be applied in Brazil. For 2010, we expect to create the conditionsfor the tender bid of a Small Thermal Power Plant (STP) using biogas generated by the Baruerisewage treatment plant.increase revenue andconsolidate the Sabesptrademark in Latin AmericaThe Aquapolo Ambiental Project made significant progress with the definition of themain terms and conditions of the contracts to build, together with Foz do Brasil, thelargest reclaimed water project in South America. The Project plans to supply up to1m³/s of reclaimed water to the Quattor Petrochemical Group, with the possibilityof extending supply to the other companies in the Capuava Petrochemical Hub. Weexpect completing the negotiations and start construction works early 2010.In addition, our entering into new segments has created new demands. In view ofthe interest shown by some cities, such as São João da Boa Vista,Mogi Mirim and Lins, the New Businesses function conducted severalstudies and analyses to bring solutions for the disposal of urban solidwaste (RSU).Companhia de Saneamento de Alagoas (Casal)The cooperation agreement entered into with Casal in 2007 has borne fruits and we entered intothe first water loss reduction technology transfer agreement with the company from Alagoas.Under the agreement, we will assist Casal, during a five-year period, to develop the water lossreduction program of the City of Maceió. Our revenue forecast for this agreement is R$25 million,and may be higher depending on the results of the water loss reduction program.This water loss reduction agreement created new demands for Sabesp. In 2009, we startedthe negotiations with Serviço Autônomo de Belém do Pará (Saaeb) and the City of Toritama, inPernambuco.For 2010, the domestic focus is multiplying and intensifying projects and partnershipswith other state-owned and private sector companies.The challenge for 2010, at the international level, is to gradually but steadily expandour operations to increase revenue and consolidate the Sabesp trademark as oneof the leading companies in Latin America. This task requires resources to fulfill ourstrategic planning goals: provide universal water and sewage services within theState of São Paulo.Supply of drinking water to SumaréIn August 2009, we entered into a treated water supply agreement with the Sumaré Department ofWater and Sewage(DAE). We will supply water to approximately 50,000 inhabitants or 20 percentof the local population. The municipality currently has an approximate population of 240,000inhabitants and after the works are completed we will be able to fulfill one of the major demands ofthe municipality’s population, which is having regular water supply and eliminate water shortageissues, especially in the Cura DistrictTo make ensure the feasibility of this operation, we are advancing R$3.5 million to fund theinvestments necessary to expand the Paulínia–Hortolândia–Monte Mor integrated system. Thesefunds will be used to build a water treatment plant and the purchase of supply equipment tosupply the integrated system. Sabesp will be in a position to supply up to 200 l/s to the municipalityof Sumaré, thus coupling the economic value of the project with the creation of an importantpolitical link for the expansion of new businesses in the region.66 Relatório de Sustentabilidade 2009 67