BRAZIL: Risk Assessment of the CASAN Water and Sanitation Company in Santa Catarina

PPIAF supported CASAN, a Brazilian majority State owned water and sanitation company in the state of Santa Catarina to determine what type of insurance coverage it needed for its key assets. By obtaining appropriate insurance, CASAN can access commercial bank loans and Brazilian capital markets, what in turn allows CASAN to improve its service to end-users. CASAN provides water services to 199 of 293 municipalities through concession and other services agreements. The services provided by the company cover practically the entire State of Santa Catarina. Treated water is distributed to a population of 2.5 million inhabitants; and a population of 319,000 inhabitants is provided with sanitary sewage collection, treatment and final disposal services.The activity succesfully performed a risk assessment of CASAN key assets and provided an estimate of probable maximum losses. The risk analysis includes considerations on property and/or financial losses associated with the premises and operations of CASAN unit in Florianopolis - the capital city of the State of Santa Catarina, including the whole production chain, i.e. from raw material suppliers to the marketing of final products (key-clients). With this information, CASAN can now obtain appropriate insurance coverage. Adequate insurance coverage is one of the key conditions for a company like CASAN to access commercial bank and capital market financing. The activity also produced a RFP for purchase of insurance based on the positive feedback from CASAN that has indicated interest in obtaining insurance coverage as per Consultant's recommendations.