PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
São Paulo, S.P., 05429-900
Federative Republic of Brazil
annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F ______
in paper as permitted by Regulation S-T Rule 101(b)(1)__.
in paper as permitted by Regulation S-T Rule 101(b)(7)__.
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
Yes ______ No ___X___
registrant in connection with Rule 12g3-2(b):
COMPANHIA DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO – SABESP
PUBLICLY-HELD COMPANY
CORPORATE TAXPAYER ID (CNPJ): 43.776.517/0001 -80
NOTICE TO THE MARKET
Companhia de Saneamento Básico do Estado de São Paulo – Sabesp, hereby announces to its shareholders the current phase of the negotiations between the government of the state of São Paulo (“State”), its controlling shareholder and the São Paulo Municipal Government (“Municipality”), to enter into a Partnership Agreement to establish the bases for sharing the responsibilities for water supply and sewage services for the city of São Paulo. The negotiations also include Sabesp and the São Paulo State Sanitation and Energy Regulatory Agency (ARSESP), both as intervening and consenting parties.
Considering that the definition of the power of concession for public basic sanitation services (Articles 25 and 30 of the Federal Constitution) has been subject of a lengthy legal dispute and the object of ongoing lawsuits in Brazil’s Supreme Court, this partnerships aims to guarantee the continuity of services rendered to the population of São Paulo city, integrate local, metropolitan and state sanitation policies and grant Sabesp the exclusive right to provide the services for the next thirty (30) years, among others.
On February 8, 2010, the Municipality held a Public Hearing to disclose the draft of said Partnership Agreement.
At this moment the draft of the Partnership Agreement is available till March 5, 2010 at the Municipal Housing Department Portal (www.prefeitura.sp.gov.br/cidade/secretarias/habitacao/), at the link “Planos”.
São Paulo, February 19, 2010.
Rui de Britto Álvares Affonso
Chief Financial Officer and Investor Relations Officer
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Companhia de Saneamento Básico do Estado de São Paulo - SABESP |
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By: |
/S/ Rui de Britto Álvares Affonso
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Name: Rui de Britto Álvares Affonso
Title: Chief Financial Officer and Investor Relations Officer |
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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.