SABESP - MATERIAL FACT

Rhea-AI Summary

On March 28, 2022, the São Paulo State Public Services Regulatory Agency (ARSESP) affirmed the economic and financial capacity of Companhia de Saneamento Básico do Estado de São Paulo (Sabesp) to achieve full public water supply and sewage services by 2033. This decision, based on Technical Note NT.F-0012-2022, indicates progress in the approval stages for several municipalities involved in regional service provision. Notably, six municipalities have pending approvals regarding contractual adjustments.

Positive

• Recognition of Sabesp's financial capacity to support long-term service goals.
• Progress in approval stages for municipalities' participation in regionalized service provision.

Negative

• Six municipalities failed to formalize approval for contractual adjustments.
• -

SÃO PAULO, March 29, 2022 /PRNewswire/ -- Companhia de Saneamento Básico do Estado de São Paulo – Sabesp ("Company" or "Sabesp"), in compliance with Resolution 44 of the Brazilian Securities and Exchange Commission (CVM), of August 23, 2021, hereby informs its shareholders and the market in general that the Executive Board of São Paulo State Public Services Regulatory Agency (ARSESP - Agência Reguladora de Serviços Públicos do Estado de São Paulo), at an extraordinary meeting held on 03/28/2022, unanimously resolved to recognize the proven economic and financial capacity of Sabesp pursuant to Federal Law 11,445/2007, amended by Federal Law 14,026/2020 and the Federal Decree 10,710/2021. 

The decision of the Agency's Executive Board is based on Technical Note NT.F-0012-2022, which concluded, considering the observations contained therein, by the effective proof of Sabesp's economic capacity to achieve the goals of full coverage of public water supply and sewage service by 2033, highlighting:

(i)  Approval in the first stage of the process of proving the economic and financial capacity (economic and financial indicators), and of the second stage (feasibility studies and the funding plan) for the municipalities participating in the regionalized provision structure established by State Law 17,383/2021 (Regional Unit for Drinking Water Supply and Sewage Services URAE 1 - Southeast); and
(ii)  Caveat to the documents of 06 municipalities (Agudos, Hortolândia, Igarapava, Quintana, Laranjal Paulista and Santo André) which did not formalize approval for the amendment related to the adjustment/integration of contractual targets into the respective contracts in force.

The extract of the Minutes of the meeting published in the São Paulo State Official Gazette (Diário Oficial do Estado de São Paulo) and the Technical Note NT.F-0012-2022 can be accessed at the link below:

ARSESP's Documents

IR Contacts: 
Mario Arruda Sampaio – (55 11) 3388-8664 (maasampaio@sabesp.com.br)  
Angela Beatriz Airoldi – (55 11) 3388-8793 (abairoldi@sabesp.com.br) 
Juliana P. S. Jardim – (55 11) 3388-9267 (jpsjardim@sabesp.com.br)

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SOURCE Sabesp

FAQ

What did ARSESP decide regarding Sabesp on March 28, 2022?

ARSESP confirmed Sabesp's economic and financial capacity to achieve full public water supply and sewage services by 2033.

Which municipalities are facing issues with Sabesp's contractual adjustments?

Agudos, Hortolândia, Igarapava, Quintana, Laranjal Paulista, and Santo André have not formalized their approvals.

What is Technical Note NT.F-0012-2022 related to Sabesp?

It is the document that outlines the technical basis for ARSESP's decision regarding Sabesp's financial capacity.

What are the implications of ARSESP's decision for Sabesp shareholders?

The decision indicates a positive outlook for future service expansion, which could enhance shareholder value.

When was the resolution regarding Sabesp's financial capacity announced?

The resolution was announced on March 28, 2022.