Published:
Sabesp Executes Third Amendment to the GESP Agreement
SAO PAULO, Brazil, Nov. 19 /PRNewswire-FirstCall/ -- Companhia de
Saneamento Basico do Estado deSao Paulo - Sabesp (NYSE: SBS; Bovespa: SBSP3),
hereby announces that the Company, theState of Sao Paulo, through its Finance
Secretariat and the Department of Water and Energy, and the Sanitation and
Energy Secretariat, as intervening party, executed the Third Amendment to the
Term of Acknowledgment of Obligations, Payment Commitment and Other Covenants,
aiming at setting out the doubts related to the retirement and pension
supplementary benefits, paid by the Company and not reimbursed by the state
government. Main aspects of the Third Amendment are outlined as follows:
a) The state government acknowledges owes to Sabesp the amount of R$915.2
million, monetarily restated until September 2008 by IPCA-IBGE, corresponding
to the Benefits Undisputed Amount paid until May 2008;
b) Sabesp accepted on a provisional basis, the Reservoirs of Taiacupeba,
Jundiai, Biritiba, Paraitinga and Ponte Nova as payment of the Undisputed
Amount and offered to the state government a provisional settlement, by
creating a financial credit of R$696.2 million corresponding to the value of
the Reservoirs, and the final settlement only occur with the effective
conveyance of ownership at the appropriate real estate registry office;
c) the outstanding balance will be initially paid in 114 monthly and
consecutive installments, the first installment matures on November 25, 2008;
d) the state government will monthly reimburse Sabesp the undisputed
installment of monthly flow of Benefits which have been paid since June 2008;
e) Benefits Undisputed Amount is the difference between (i) the nominal
amount effectively paid by Sabesp and not reimbursed by the state government
and (ii) the nominal Undisputed Amount that reached the amount of R$383.4
million, taking into consideration the Benefits paid until May 2008;
f) Sabesp will forward to the State Government Attorney's Office - PGE a
substantiated motion in order to obtain a new examination of discrepancies
that gave rise to the Undisputed Amount, and it is worth mentioning that the
State Attorney General formally informed the Company about his availability in
revaluating such discrepancies.
The full text of the Third Amendment is available on the Sabesp website:
www.sabesp.com.br .
SOURCE Companhia de Saneamento Basico do Estado deSao Paulo - Sabesp
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