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July 2025

Arbitration involving Sanitation Company Terminates with Favorable Settlement and Confirmation of Amounts Owed

Administrative and Regulatory Law, Arbitration, Basic Sanitation, Conciliation, Mediation and Negotiation

Bruno Calfat Advogados represented a private sanitation company in an arbitration proceeding conducted before the FGV Mediation and Arbitration Chamber, against a city of the State of Rio de Janeiro and a guarantee fund for public-private partnerships.

In the proceedings, the company sought the enforcement of the clauses and conditions of the Public-Private Partnership Agreement that had been entered by the parties, through the recognition of company’s fulfillment of Target 1 of the contract, and the consequent payment of the amounts contractually stipulated.

Following negotiations and the legal strategy applied in the proceedings, a settlement was reached between the parties, which was confirmed by the arbitral tribunal in the arbitral award.

In the settlement, the respondents recognized that the company had achieved Target 1 of the contract, thereby securing its right to receive the multimillion-reais compensation owed. It was also established that the municipality would preserve the financial soundness of the guarantee fund, and that a fourth amendment to the agreement would be executed to ensure the economic and financial rebalance of the public-private partnership and revision of its performance targets.

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