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1. How can I get in touch with the Investor Relations area?
Send a message on the page:Talk to IR.
2. How and where does BRK Ambiental disclose information?
Information disclosed by BRK Ambiental is available at the site http://ir.brkambiental.com.br.
Moreover, following the present legislation, BRK Ambiental should publish its annual financial results, shareholding measures and other information in the Diário Oficial do Estado de São Paulo - official journal of the State of São Paulo - and in the Diário do Comércio e Indústria.
3. How much potential does Brazil have regarding the Water and Wastewater sector?
Compared to other Latin American and even to some African countries, Brazil has a big sanitation deficit, which is far from what is considered to be ideal for the 7th largest economy in the world.
According to Instituto Trata Brasil, 93% of our urban population has access to clean water. However, less than 50% has access to collected wastewater and less than 50% of that wastewater is treated. In order to provide full access to water and wastewater in the country, the PLANSAB (Basic Sanitation National Plan) report points out the need for investments in the sector around R$ 303 billion for the next 20 years.
4. How does BRK Ambiental finance its sanitation infrastructure projects
In the beginning of the operations, we use our own capital and money from bridge loans. During that period, we set up a long-term financing fund, most of it under project financing modality. For the water and wastewater segment, we can point out the Federal Government program "Saneamento para Todos" (Sanitation for all), which is financed by Caixa- a Brazilian federal bank - and, besides having a competitive cost, has quite a long pay-back period (up to 20 years).
5. How does the regulation for the Water and Wastewater Sector works in Brazil?
Since 2007, the Law 11.445/07 - Basic Sanitation Law - guarantees a series of rights for the users of water and wastewater services. It also sets up the basic rules for the sanitation sector, establishing the competences of the Federal Government, the States and the City Halls, besides ruling the participation of private companies in the basic sanitation segment, as follows:
- Federal Government - Sets up the basic principles of, formulates and supports sanitation programs at national level. ANA - National Agency of Water - was created in 2007 to help the government fulfill its task;
- States - Operate and maintain the sanitation systems, setting the tariff rules and subsidies for the systems run by the States;
- City Halls - They should be responsible for the basic sanitation services, collection, treatment and final disposal of sanitary wastewater, directly or by means of outsourced partners. They are also in charge of the Municipal Plans for Basic Sanitation - Planos Municipais de Saneamento Básico (PMSB).
The services provided by the water supply and wastewater treatment companies are supervised by regulatory state or regional agencies, like in São Paulo, which define the rules regarding the quality, quantity and frequency of the services rendered to the users, as well as they set up changes in tariffs and organize the system for companies which operate in more than one city, among other things. The quality of the basic sanitation services is monitored by the National System of Information on Sanitation - Sistema Nacional de Informações sobre Saneamento (SNIS) -, which collects and organizes all data related to the quality of the water services.
6. What kind of contracts does BRK Ambiental have in the Water and Wastewater segment? And in which localities?
The water and wastewater assets of BRK Ambiental are divided in several different kinds of contracts
Total Concession: the concessionaire is responsible for the capture, treatment and distribution of water, and for the collection, treatment and final disposal of wastewater. The States of Espírito Santo, Pará, Rio Grande do Sul, Tocantins and São Paulo have assets like these;
Partial Concession: the concessionaire is responsible for the collection, treatment and final disposal of wastewater. These BRK Ambiental assets are found in the states of Goiás, Santa Catarina and São Paulo;
Public-Private Partnership: in this case, one or more public representatives/institutions, like the state or municipal government or a public company, set up partnerships for the construction, maintenance and/or operation of a certain asset. Like that, the public partner is responsible for paying the financial compensation to the private partner. BRK Ambiental operates that way in Bahia, Minas Gerais, Pernambuco, Rio de Janeiro and São Paulo;
Assets lease: according to this model, the contracted company builds a facility, like a water/wastewater treatment station, and rents it to the public administration for a certain period of time, according to a contract. BRK Ambiental operates like that in the state of São Paulo.
7. How do the Industrial assets work? Do they belong to BRK Ambiental and/or are there any contracts?
BRK Ambiental, through the Industrial segment, subcontracts utilities centers located in plants or industrial areas which provide sustainable solutions for water supply (with various physicochemical specifications), wastewater treatment, cogeneration of energy and management of solid waste. Nowadays, our Clients are major industries in the pulp paper, petrochemical and steel segments.
The main advantages of subcontracting utilities centers are the demobilization of the assets which aren’t core business and the contractual warranty that the volume contracted will be supplied and within the required specifications.
The contracts vary according to the Client, covering the project and construction or the purchasing of the asset and its operation. At the end of the contract, the asset may be transferred to the Client or remain in BRK Ambiental portfolio.
Funcef has been a partner of BRK Ambiental in that business segment, since 2013.