Rio State Audit Court Halts R$900 Million Cedae–Águas do Rio Deal

Overview

• The monocratic order by TCE-RJ counselor José Gomes Graciosa freezes any discounts or payments tied to the accord until a plenary ruling.
• TCE-RJ demanded documents from the governor, Cedae, Agenersa and the concessionaire within 15 days and requested inputs from BNDES plus Caixa financing contracts.
• The Rio state prosecutor’s office opened an inquiry to examine possible loss to the public purse, governance failures and reports of coercion of Cedae directors.
• The Oct. 3 conciliation set a 24.13% discount on water purchases, valued by Águas do Rio at about R$900 million and up to R$1.4 billion with corrections, citing overstated sewage coverage based on self-reported SNIS data flagged in a pre-auction BNDES study.
• Parallel claims broaden the exposure, with Rio Mais Saneamento seeking R$325 million and Iguá requesting R$1.5 billion, raising risks for tariffs and planned sanitation works including Baía de Guanabara projects.