Mekorot National Water Company subsidiary Mekorot Development and Initiations Ltd. has signed cooperation agreements with two Brazilian water companies - Companhia de Saneamento Basico of Sao Paulo State (Sabesp) (NYSE: SBS; Bovespa: SBSP3) and Companhia de Saneamento Ambiental do Distrito Federal (Caespb). Mekorot chairman Eli Ronen signed the agreements during his tour of South America, which is aimed at promoting collaboration and projects with local water companies.
Ronen said that the agreements were the direct result of Mekorot's deepening of activity in South America. Brazil is coping with rapid population growth and urbanization, causing severe water problems that are aggravated by droughts in parts of the country. The country's water companies are struggling with sewage contamination of water sources, and the need to improve their water management. Mekorot will work with Sabesp and Caesb on treating contaminated water sources, desalination, water quality, hydrology, drilling, sewage treatment and wastewater reclamation, reduction of water depreciation, and the use of advanced water technologies.
Sanesp provides water and sewage treatment to the State of Sao Paulo, which includes Brazil's business capital of Sao Paulo, and has about 41 million residents. Caesb provides water and sewage treatment to the Federal District, including Brazil's capital, Brasilia.
Ronen said, "These agreements strengthen Mekorot's global position as a leading water company, especially for arid regions that are dealing with water shortages and poor water quality. The new agreements will strengthen Mekorot's international activity and will help boost its revenue."
Published by Globes [online], Israel business news - www.globes-online.com - on August 9, 2009
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