Aegea has recently been elected the best company in the category “Private-held” by the magazine Saneamento Ambiental. The magazine is the largest and most important publication in the sector, and the election was conducted by its entire editor team. The choice, as previously disclosed, took into consideration criterions as the ratio of Investments to Net Revenue, Sewage Treatment Index, Water Physical Loss and Revenue to Employee.
It was also elected this year companies that were fitted in the category Public run, in which CAESB (located in the Federal District) and Semae (from the municipality of São José do Rio Preto – State of São Paulo). The prizes “Company of the year in the Environmental Sanitation” will be formally delivered to winners by the direction of the magazine in May, in a ceremony that is to take place in the city of São Paulo.
Founded in late 2010, Aegea Saneamento represents the main business of the Equipav Group, and currently holds 15% of the private sanitation market, corresponding to a portfolio of 25 municipalities spread over five States: São Paulo, Rio de Janeiro, Mato Grosso, Mato Grosso do Sul and Santa Catarina. The Company is positioned as one of the largest public service operator in the private segment, and counts with approximately 1,700 employees.
The group’s operations in the private sanitation market began with the 2005 acquisition of the Águas Guariroba concessionaire, in Campo Grande (MS), and soon after it acquired Prolagos, which serves the five municipalities making up the Lake Region in the state of Rio de Janeiro (Búzios, Cabo Frio, Iguaba Grande, São Pedro da Aldeia e Arraial do Cabo). In 2012 Aegea opened up its perspectives with three great conquers in new markets.
In the state of São Paulo, Aegea is represented by its concessionaire Águas do Mirante, in Piracicaba, which arose from a public-private partnership (PPP) proposal to provide sanitation and hydrometry services for a period of 30 years and foresees investments of BRL 333 million to be disbursed over the concession period. Accounting with an already approved loan of BRL 33 million, Águas do Mirante is already working to promote the universalization of sewage service for the municipality.
In the State of Santa Catarina, Aegea acquired a 50% stake in Nacional Águas e Saneamento, which is responsible for the operation, maintenance, and management of the urban water supply system in the city of Penha, marking its debut in the service segment.
Aegea acquired control of 16 concessions in small and medium-sized municipalities in the state of Mato Grosso (MT) and at the end of the year it won the bidding process to manage water and sewage services for the municipality of Porto Espiridião (MT). In order to manage these concessions within the standards and goals of its management model, it created the Cuiabá (MT)-based holding Nascentes do Xingu, with two regional basis in Sorriso and Primavera do Leste. Sparsely distributed throughout the state, the municipalities in question comprise beyond the three already mentioned, the following ones: Campo Verde, Pedra Preta, Poconé, Jauru, Carlinda, Peixoto de Azevedo, Marcelândia, Santa Carmem, União do Sul, Vera, São José do Rio Claro, Nortelândia, Cláudia and Jangada. The contract envisages coverage of almost 84 thousand households and investments of BRL 200 million on water and sewage network.
With all these operations, Aegea ended 2012 serving 798,569 households, which corresponds to a covered population of 1.9 million up to 3.5 million (considering the high season, whose sazonality affects most the municipalities served by Prolagos).
Aegea reported Net Revenue of BRL 390 million, a growth of 19.3% in comparison to 2011. Its Key Performance Indicators, anchored in a highly successful operational model, consolidate the basis for its growth strategy – an efficient capital structure, specialized management, structured corporate governance, and long-term capital partnerships, all of which underpinned by rigorous staff training that enables the adopted model to be successfully replicated in each new concession. Also in 2012 Aegea attracted a long-term loan of BRL 100 million from the International Finance Corporation (IFC), the World Bank’s financing arm, which became an Aegea shareholder and has leveraged possibilities of new business.
Hamilton Amadeo, Aegea´s Chairman, assures that the Growth goes on: “Public authorities are gradually realizing that the private initiative can help a lot to reduce the current deficit of the sector, as well as the State-run companies understood the synergy gain on moving forward together. Our operational model has debunking the idea that it was not feasible to operate in a sustainable manner in small and midsized municipalities, such as those served by Prolagos and Nascentes do Xingu, or in regions lacking basic infrastructure. The maturation of our businesses also reflects the dynamism of our growth strategy, which involves tripling our size by 2017.
In late-March Aegea has obtained for Águas Guariroba a loan agreement of BRL 160 million from Caixa Econômica Federal (a local fostering bank). The amount is equivalent to 94% of the investments to be recognized by the end of 2014 on water supply, sewage sanitation and loss reduction program. The counterpart of BRL 10 million are to be disbursed by the concessionaire itself, totaling BRL 170 million in investments that are expected to beneficiate more than 800 thousand of people. Prolagos will also account with a relevant investment amount on its network. The financing obtained from the Brazilian Development Bank (BNDES) of BRL 123 million are going to be destined to basic sanitation in the municipalities served by, beneficiating almost half million of people. The amount is equivalent to 75% of the investments to be recognized by 2016. The amount left of BRL 41 million will be provided by Prolagos itself, totaling BRL 164 million in investments.
According to Hamilton Amadeo, the title Company of the Year awarded by the magazine Saneamento Ambiental brings the group Joy and Proud – “This conquer has arrived in a very special moment, and it is the recognition of the work of an incredible crew, fully dedicated to a project that only expects benefits. This project will bring a huge progress to the careers of the professionals involved in, but above of all, it constitutes a legacy of serious improvements for the lives of the local people where we are established in, and without our help, it would not happen that fast”.