Companhia de Saneamento do Paraná SANEPAR : Material Fact - Proposal of Draft Terms of Contractual Updates (Law No. 11,445/2007)
October 22, 2021 at 06:34 pm EDT
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COMPANHIA DE SANEAMENTO DO PARANÁ - SANEPAR
PUBLICLY- HELD COMPANY
CVM REGISTRY nº 01862-7
CNPJ nº 76.484.013/0001-45
MATERIAL FACT
Companhia de Saneamento do Paraná - Sanepar in compliance with the provisions of CVM Resolution No. 44/2021, informs its shareholders, investors and the market in general that at the 13th/2021 Extraordinary Meeting of the Board of Directors, concluded on this date, and considering the provisions of Federal Law No. 14,026/2020, of Complementary Law No. 237 of July 9, 2021, enacted by the Government of the State of Paraná, by which it established the Central- Coast, Central-East and West Microregions of public water supply and sanitary sewage services and their respective governance structures, as well as established guidelines for the application of state public policy to update contracts in force aiming at the universalization of water and sewage services, and complying with the provisions of the Law and State Decrees, the studies prepared by specialized consultants hired by the Company were presented, aiming to identify the possible global economic and financial impacts is in the concession / program contracts currently executed by Sanepar arising from the insertion of the goals provided for in Article 11-B of the new wording of Federal Law No. 11,445/2007, of January 5, 2007.
The results of these studies indicate the need for economic and financial rebalancing of the Company's concession / program contracts, in view of the impacts brought by the goals of the aforementioned Article 11-B, which establishes the universalization of 99% with potable water supply and 90% with sewage collection and treatment up to December 31, 2033, as well as quantitative targets for non-intermittency in supply, reduction of losses and improvement of treatment processes. The study estimates approximately BRL 16.4 billion in investments for universalization by the year 2033.
The aforementioned studies, which indicate the term extension as a form of contractual rebalancing, as well as the proposal of draft terms of contractual updates and its attachments, to be signed with the Microregions, under the terms
of the legislation, will be filed by the Company at the Central-Coast,Central-East and West Microregions, in order to obtain the consent of the Granting Authority in the amendments, to enable the subsequent realization of the study of economic and financial capacity and fundraising plan to meet the universalization goals that are intended to be agreed upon.
The Company will keep its shareholders, investors and the market at large informed about this process.
Curitiba, October 22nd, 2021
Abel Demetrio
Chief Financial and Investor Relations Officer
This is a free translation for informative purposes only, without any legal validity. The original text in Portuguese is the only legal version and must be consulted in order to elucidate any doubts or conflicts.
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SANEPAR - Companhia de Saneamento do Paraná published this content on 22 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2021 22:33:03 UTC.
Companhia de Saneamento do Parana Sanepar, formerly Companhia de Agua e Esgotos do Parana - Agepar, is a Brazil-based company active in the provision of basic sanitation services. The Company is primarily engaged in the water distribution, as well as in the collection and treatment of sewage. The Company is also involved in the studies, projects and expansion of water distribution networks, collection networks and sewage treatment infrastructure. Additionally, Companhia de Saneamento do Parana Sanepar provides collecting and processing of solid waste. In addition, it provides consulting services and technical assistance. The Company collaborates with agencies, governmental and municipal state entities. Companhia de Saneamento do Parana Sanepar operates in 346 municipalities.