Iguá Saneamento S.A. has won the auction for the concession of Block 2 in the privatization of water and sewage services from CEDAE, Rio de Janeiro's water and sewage company, for a fixed grant fee of BRL 7.286 billion (CAD 1.7 billion). The new concession will be funded with additional capital invested into Iguá from among its current shareholders, as well as debt financing. Iguá is a water and sewage service holding company currently operating 18 concessions and contracts across five Brazilian states, and providing sanitation services for more than six million people. This new transaction will expand its operations to the Greater Rio de Janeiro area and add one million people to its client base. The new concession will have a length of 35 years. CEDAE, will remain responsible for supplying clean and treated water to the Metropolitan Region of Rio de Janeiro. Iguá will be responsible for water distribution, collection, treatment and sewage services in its designated concession area.