Share the page

Supplying drinking water to 10 million Brazilians

Project

Networks and infrastructures
AguasDoRio
Signature date
Location
Brazil
Financing tool
Guarantee
Financing amount (Euro)
94000000
Financing details
BRL 175m guarantee for Aguas do Rio 1 (i.e., EUR 33m) and BRL 325m for Aguas do Rio 4 (i.e., EUR 61m)
Customer
Águas do Rio 1 SPE S.A. / Águas do Rio 4 SPE S.A.
Type of customer
Company
Country of headquarters
Brazil
Project number
PBR1098 / PBR1099
Environmental and social ranking
A
Climate co-benefits
Project with climate co-benefits
Download the report

This information is given at the time of signature, without prejudice to any developments in the operation/project.

Proparco and IDB Invest have partnered to allocate financing to Águas do Rio 1 and Águas do Rio 4, concessions of Aegea, Brazil’s largest private water and sanitation operator.

Client presentation

Aegea Saneamento (“Aegea”) is Brazil’s largest private water and sanitation operator, currently serving more than 30 million people across 480 municipalities in 13 Brazilian States. Since Proparco’s first financing in 2014, the group has demonstrated a solid track-record in increasing service penetration, while bringing significant efficiency improvements in the concessions it has taken over.

Project description

Aguas do Rio 1 and 4 are concessions of Aegea, which is in charge of the operation and maintenance of the water distribution system and sewage collection and treatment systems over a 35-year period. 

Aguas do Rio 1 covers the southern part of the city of Rio de Janeiro and 18 other municipalities in the State of Rio de Janeiro. The project covers several vulnerable communities and serves around 3 million people. 

Aguas do Rio 4 covers the southern part of the city of Rio de Janeiro and 8 other municipalities in the State of Rio de Janeiro. The project covers several vulnerable communities and serves around 7 million people. 

The project aims to achieve universal service coverage by 2033, providing 99% of the population in the region with access to drinking water and 90% to sewage collection and treatment.

Project impact

The project to finance Aguas do Rio (concessions 1 and 4) will have a number of positive environmental, social and economic impacts: 

  • A positive impact on biodiversity conservation by depolluting Guanabara Bay, the Guandú River and the Rodrigo de Freitas Lagoon in which sewage from the province of Rio is currently discharged. A total of 40% of the project amount will have biodiversity co-benefits. 
  • 100% of the project will qualify as “Climate” finance by increasing resilience to climate change (reduction of losses in a context of climate-related water stress) and through co-benefits for climate change mitigation (improved carbon efficiency of the network). 
  • It is estimated that a total of 8.7 million residents of the province of Rio will benefit from new or improved access to a water and sanitation service. 
  • About 24,000 jobs will be maintained and 3,220 created under this financing, some of them in the deprived neighborhoods of the province of Rio.

The project will thereby contribute to the achievement of SDG 3 (Good health and well-being), SDG 6 (Clean water and sanitation), SDG 8 (Decent work and economic growth), SDG 9 (Industry, innovation and infrastructure), SDG 10 (Reduced inequalities), SDG 11 (Sustainable cities and communities), SDG 12 (Responsible consumption and production), SDG 13 (Climate action) and SDG 14 (Life below water).