Aguas do Rio

The Aguas do Rio project contributes directly to a number of sustainable development goals:

SDG 6 – Ensure availability and sustainable management of water and sanitation for all: The principal objective of the project is the universalization of sanitation services in 27 municipalities of the State of Rio de Janeiro. Águas do Rio will invest approximately R$ 30 billion to provide water supply and sanitation services, benefiting over 10 million people in the city and state of Rio de Janeiro by 2033.

SDG 3 - Ensure healthy lives and promote well-being for all at all ages: The universalization of sanitation reduces waterborne diseases, contributing to improving the health and well-being of the population

SDG 8 - Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all: The project generates over 8,000 direct jobs and 15,000 indirect jobs.

SDG 14 - Conserve and sustainably use the oceans, seas and marine resources for sustainable development: A core component of the project is to contribute to the clean-up of Guanabara Bay.

Value for money is embedded in the project at the different stages of the lifecycle:

Procurement: the project was procured through a competitive tendering process which resulted in four bids. The project was then awarded through an open auction process based on the highest fixed concession fee. Furthermore, the concession agreement includes KPIs for performance and service levels.

Operations and maintenance: The project uses a variety of technologies to optimise efficiency and reduce leakage::

• All the company's assets are mapped through the InfraInteligente Program, which functions as a digital twin of those assets in order to create stress scenarios and identify the proper preventive maintenance for the networks and plants, with the objective of ensuring operational reliability.

• The Company uses the Takadu technology® for leak detection, whereby algorithms identify the expected behavior for operational variables of flow, pressure and reservoir level, indicating when and at what point the Operational Control Center operator should initiate an investigation. The technology can also identify non-visible leaks in pipes or connections.

• By using Bentley’s WaterSight software, hydraulic network simulations are performed, including potential pipe ruptures, identifying which registers should be closed for repair and how customers would be affected.

Águas do Rio recruited more than half of the employees in favelas and local communities. Over 154,000 hours of training courses were provided to employees during 2023, including employees living in underprivileged communities.

For the initial financing of the project, R$ 7.8 billion in debentures were issued in the local capital market.

Aegea has a comprehensive anti-corruption system comprising policies relating to bribery, facilitation payments, related party transactions, gifts and political donations, as well as a Code of Conduct. Implementation of these policies is overseen by an Integrity Board that reports to the CEO and Board of Directors via the Audit Committee.

Prior to tendering process, the project was subject to a broad public consultation. In addition, the company operates an ongoing consultation process called the Afluentes Program that aims to promote an open channel of communication between communities and the company through building relationships with community leaders. The program enables the company to get closer to residents, learn about their needs, and collect suggestions and opinions about the services being provided.

The Concession Agreement explicitly mentions the obligation to provide services to all areas, including slums and substandard agglomerations. In addition, low-income families can benefit from a social tariff.