During 2005, R$ 678.2 million have been invested in the municipalities of SABESP’s operating area. The table below sets forth the investments in water and sewage made in the São Paulo Metropolitan Region and in the regional systems.

Investment by Region - 2005 (in millions of R$)
Region	Water	Sewage	Total
RMSP	231.6	224.6	456.2
Regional Systems	84.6	137.4	222.0
Total	316.2	362.0	678.2

The new water and sewage connections and the served populations are shown below:


Water and sewage connections made and served population - 2005

		RMSP	Regional Systems	Total
Water	No. of new connections¹	101	57	158
	Served population²	415	185	600
Sewage	No. of new connections¹	81	61	142
	Served population²	345	200	545

(¹) In thousands
(²) In thousands of inhabitants


São Paulo Metropolitan Region

In 2005, investments in São Paulo Metropolitan Region reached R$ 456.2 million, distributed among the Company’s several programs for water production and distribution, sewage collection and treatment, for a population of 15.3 million people served with water services and 12.4 million people served with sewage collection network.

• Water
  
  Unlike 2004, the year 2005 began highly favorable concerning the rain levels, recovering a significant portion of the reservoirs of the São Paulo Metropolitan Region Water Supply Integrated System, recovering consumption in the Metropolitan Region, which was significantly affected by the Incentive Program for Water Consumption Reduction. In order to minimize the possible effects of water shortage and ensure service expansion and regularization, approximately R$ 75 million were invested in the Water Metropolitan Program (PMA II), through the execution of enterprises that increase availability of water in the resources, improvement of the treatment capacity and of water adduction and distribution system.
  
  
  
• Sewage
  
  For the expansion of the sewage collection systems, approximately 81,000 new connections were made in the São Paulo Metropolitan Region, serving more than 345,000 people.
  
  In the Tietê Project Second Stage, financed with funds from the Interamerican Development Bank (IDB), approximately R$ 720 million were used until 2005, which represents the implementation of 123 kilometers of interceptors and collectors, 1,030 kilometers of collecting networks and 120,000 residence connections, in addition to the development of operational improvement actions and of special studies inherent to the Program. Specifically for in 2005, SABESP reached the figure of R$ 180 million of invested funds, with the physical implementation of 20 kilometers of interceptors and collectors, 110 kilometers of collecting networks and 12,000 residence connections.
  
  
  
• Operational Development
  
  The re-arrangement works of Cotia Aqueduct continued, which will provide benefits to more than 400,000 people in Taboão da Serra, Embu and São Paulo (Jardim Arpoador and Raposo Tavares) and the filling-up of the Paraitinga and Biritiba-Mirim reservoirs, which are part of the Alto Tietê System, which will regularize more 2.5 cubic meters of water, which, associated to the 3.4 cubic meters of water from that same basin, originating from the agreement with the State Department of Water and Energy (Departamento de Águas e Energia Elétrica – DAEE), will add up to 5.9 cubic meters of water, ensuring better water storage conditions for the supply.
  
  In order to improve the supply of São Bernardo do Campo, small works, interconnections and sector changes were performed, solving problems of intermittent supply for 165,000 people.
  
  In a fully innovative action, it was performed the individual connection of the apartments of a Companhia de Desenvolvimento Habitacional Urbano – CDHU (the largest habitation promoting agent in Brazil) habitation complex (pilot), involving 8 blocks, in a total of 160 apartments with individual bill.
  
  
  

Regional Systems

From the total of 368 municipalities operated by SABESP, the Regional Systems Division operates in 330 municipalities of the interior and coastal areas of the State of São Paulo and, during 2005, where investments of approximately R$ 222.0 million were made. We point out the following achievements:

• Water
  
  Enlargement and improvements of water supply systems with the execution of approximately 57,000 new water connections, to the benefit of approximately 185,000 people in several municipalities, among which Bertioga, Botucatu, Campo Limpo Paulista, Caraguatatuba, Cubatão, Guarujá, Hortolândia, Itapetininga, Praia Grande, Mongaguá, Itanhaém, Peruíbe, São Sebastião, Lins, São José dos Campos, Presidente Prudente, Franca, Itatiba, Santos, Taubaté and Tremembé.
  
  
  
• Sewage
  
  Implementation, enlargement and improvements in sewage systems, with approximately 61,000 new sewage connections, to the benefit of approximately 200,000 people in several municipalities, such as Botucatu, Campo Limpo Paulista, Caraguatatuba, Cubatão, Franca, Guarujá, Hortolândia, Monte-Mor, Ilhabela, Paraguaçu Paulista, Paulínia, Itapetininga, Pindamonhangaba, Praia Grande, Mongaguá, Itanhaém, Peruíbe, Santos, Lins, São Sebastião, São José dos Campos, Campos do Jordão, Taubaté and Ubatuba.
  
  
  
• Environmental Recovery of the Baixada Santista Metropolitan Region
  
  The program objective is to implement sewage systems that will provide benefits to all municipalities of the Baixada Santista Metropolitan Region. It comprises the execution of 1,100 kilometers of collecting networks, 125,000 residence connections, 85 pumping stations, 7 treatment stations, 1 ocean disposal system and improvements in the sewage pre-conditioning station in the ocean outfall of Santos/São Vicente.
  
  
  
• Operational Development
  
  In order to work in a planned and effective manner, SISPLAN system has been developed and is responsible for the planning and control of the operational development actions that, associated to SISPERDAS, allows the accompanying of all operational development actions and their effective results.
  
  As regards to actions and focusing on loss control and reduction, a strategy that affects all factors interfering in the composition of real losses has been adopted, with emphasis on: macro meters gauging program, with the acquisition of equipments and software, training on non-visible leakage survey, purchase of geophones and listening bars, development and control of materials quality and development of connection standard. In order to improve network’s pressure conditions in the networks, the park of pressure-reducing valves has been enlarged, with the installation of 34 additional valves in 2005.