-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 S9pkrv6yCpCc0m8/i861hCGYRtKE7EcGtRM0+kLkFvrU5+3PirVj2W67onMQOkWZ
 FarB/YbAtgENu2COaknTNA==

<SEC-DOCUMENT>0001292814-08-003512.txt : 20081223
<SEC-HEADER>0001292814-08-003512.hdr.sgml : 20081223
<ACCEPTANCE-DATETIME>20081223142355
ACCESSION NUMBER:		0001292814-08-003512
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20081231
FILED AS OF DATE:		20081223
DATE AS OF CHANGE:		20081223

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COMPANHIA DE SANEAMENTO BASICO DO ESTADO DE SAO PAULO-SABESP
		CENTRAL INDEX KEY:			0001170858
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER SUPPLY [4941]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			D5
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31317
		FILM NUMBER:		081266820

	BUSINESS ADDRESS:	
		STREET 1:		RUA COSTA CARVALHO, 300
		STREET 2:		SAO PAULO
		CITY:			SP
		STATE:			D5
		ZIP:			05429-900
		BUSINESS PHONE:		011-55-11-3388-8000

	MAIL ADDRESS:	
		STREET 1:		RUA COSTA CARVALHO, 300
		STREET 2:		SAO PAULO
		CITY:			SP
		STATE:			D5
		ZIP:			05429-900
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>sbs20081128_6k.htm
<DESCRIPTION>GESP
<TEXT>
<HTML>
<HEAD>
   <TITLE> Provided by MZ Data Products</TITLE>
   <META name="HandheldFriendly" content="true">
</HEAD>

<BODY style="font-family: 'Times New Roman, Times, Serif'; font-size:11px; text-align:justify" bgcolor="#ffffff">
<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>Washington, DC 20549 </B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<HR align="center" WIDTH="25%" size=1 NOSHADE COLOR="#000000">
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>FORM 6-K</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>REPORT OF FOREIGN ISSUER </B> <BR>
      <B>PURSUANT TO RULE 13a-16 OR 15d-16 OF THE</B></FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>SECURITIES EXCHANGE ACT OF 1934</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center">
  <div><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B> For November 28, 2008</B></FONT></DIV>
  <p></p>
  <FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B> (Commission File No. 1-31317) </B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<HR align="center" WIDTH="25%" size=1 NOSHADE COLOR="#000000">
<DIV><FONT
SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B> Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP </B></FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><i>(Exact name of registrant as specified in its charter) </i></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"> </DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B> Basic Sanitation Company of the State of Sao Paulo - SABESP </B></FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><i>(Translation of Registrant's name into English) </i></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<HR align="center" WIDTH="25%" size=1 NOSHADE COLOR="#000000">
<BR>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B> Rua Costa Carvalho, 300 <BR>
  S&#227;o Paulo, S.P., 05429-900 <BR>
  Federative Republic of Brazil </B></FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><i> (Address of Registrant's principal executive offices) </i></FONT></DIV>
<BR>
<HR align="center" WIDTH="25%" size=1 noshade COLOR="#000000">
<BR>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Indicate by check mark whether the registrant files or will file <br>
  annual reports under cover Form 20-F or Form 40-F. <BR>
  <br>
  Form 20-F ___X___ Form 40-F ______</font></div>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Indicate by check mark if the registrant is submitting the Form 6-K <BR>
  in paper as permitted by Regulation S-T Rule 101(b)(1)__.</font></div>
<P>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Indicate by check mark if the registrant is submitting the Form 6-K <BR>
  in paper as permitted by Regulation S-T Rule 101(b)(7)__.</font></div>
<P align=center><FONT FACE="'Times New Roman, Times, Serif'" SIZE=2>Indicate by check mark whether the registrant by furnishing the <BR>
  information contained in this Form is also thereby furnishing the <BR>
  information to the Commission pursuant to Rule 12g3-2(b) under <BR>
  the Securities Exchange Act of 1934. <BR>
  <BR>
  Yes ______ No ___X___</font></p>
<P>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> If "Yes" is marked, indicated below the file number assigned to the<BR>





  registrant in connection with Rule 12g3-2(b):</font>
    <p></p>
</DIV>

<hr size="2" noshade color="#000000" align="left">
<H5 align="left" style="page-break-before:always"></H5>
<A name="page_1"></A>

<div style="DISPLAY: block; MARGIN-LEFT: 400pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
<B>THIRD AMENDMENT TO THE TERM OF ACKOWLEDGMENT OF OBLIGATIONS, PAYMENT COMMITMENT AND OTHER COVENANTS ENTERED INTO BETWEEN THE STATE OF S&Atilde;O PAULO, COMPANHIA DE SANEAMENTO B&Aacute;SICO DO ESTADO DE S&Atilde;O PAULO &#150; SABESP AND THE
DEPARTMENT OF WATER AND ELECTRICITY - DAEE. </B></div>
<P>
The parties below: </P>
<P>
1. <B>The State of S&atilde;o Paulo</B> (&#147;State&#148;), governmental entity through the Finance Secretariat, represented hereby by its head officer, Mr. Mauro Ricardo Machado Costa; </P>
<P>
2. <B>Companhia de Saneamento B&aacute;sico do Estado de S&atilde;o Paulo </B>(&#147;Sabesp&#148; or &#147;Company&#148;), a mixed economy, state-government controlled and public corporation, corporate taxpayer&#146;s ID (CNPJ 43.776.517/0001 -80), headquartered at Rua Costa Carvalho, 300, in the City and State of S&atilde;o Paulo, represented
hereby by its Chief Executive Officer, Mr. Gesner Jos&eacute; de Oliveira Filho, jointly with the Chief Financial Officer and Investor Relations Officer, Mr. Rui de Britto &Aacute;lvares Affonso; and </P>
<P>
3. <B>Department of Water and Electricity </B>(&#147;DAEE&#148;), independent governmental entity, headquartered at Rua Boa Vista, 170, in the City and State of S&atilde;o Paulo, corporate taxpayer&#146;s ID (CNPJ) 46.853.800/0001 -56, represented
herein by its Superintendent, Mr. Ubirajara Tannuri Felix, jointly with its Chief Financial Officer, Mr. Ismar Lissner; </P>
<P align="right">
1 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_2"></A>

<P>Severally called as &#147;Party&#148; and jointly as &#147;Parties&#148;, and as intervening party,</P>
<P>
4. <B>Sanitation and Energy Secretariat of the State of S&atilde;o Paulo </B>(&#147;SSE&#148;), represented herein by its head officer, Mrs. Dilma Seli Pena; </P>
<P align="center">
<B>WHEREAS </B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. The State, Sabesp and DAEE, and SSE as intervening party (at that time, Department of Water Resources, Sanitation and Works), executed on December 11, 2001, the Term of Acknowledgment of Obligations, Payment
Commitment and Other Covenants (&#147;Term of Acknowledgment&#148;), by means of which, the State undertook among other obligations to reimburse Sabesp for the amounts disbursed thereby, between the period of March 1986 until November 2001, as
payment of benefits referred to by Law of the State of S&atilde;o Paulo #4,819 of August 26, 1958 (&#147;Benefits&#148;); <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. the effective reimbursement by State to Sabesp was halted due to the fact that they have not reached an agreement as to the
proper criteria of calculation and eligibility of Benefits; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. in light of these disagreements, on March 26, 2008, the State and Sabesp entered into the Term of Commitment, by means of which they agreed on engaging a specialized company to
determine the Undisputed Reimbursement Amount and the Disputed Amount, as well as the engagement of 2 specialized companies to appraise the reservoirs of Taia&ccedil;upeba, Jundia&iacute;, Biritiba, Paraitinga and Ponte Nova that comprise the Alto
Tiet&ecirc; System (&#147;Reservoirs&#148;); </P>
<P align="right">
2 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_3"></A>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. Research Institute of Accounting, Actuarial &amp; Financial Foundation (&#147;Fipecafi&#148;), and the companies Companhia Paulista de Obras e Servi&ccedil;os (&#147;CPOS&#148;) and Engeval - Engenharia e Avalia&ccedil;&otilde;es
(&#147;Engeval&#148;) were re-engaged to determine the Undisputed Amount and the Disputed Amount, as well as to carry out the appraisal of Reservoirs; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. Fipecafi determined the nominal Undisputed Amount of five hundred, seventy-one million, seven
hundred, thirteen thousand, five hundred, sixty-seven reais and thirty-five centavos (R$571,713,567.35), composed of the net amount of five hundred, sixty-one million, sixty-six thousand, forty-nine reais and forty-one centavos (R$561,066,049.41)
and the portion referring to the social security contribution of the undisputed amount of ten million, six hundred, forty-seven thousand, five hundred, seventeen reais and ninety-four centavos (R$ 10,647,517.94), determined based on criteria
exclusively accepted and indicated by the State, taking into consideration data of payments made by Sabesp in the period between January 1986 and May 2008. The Undisputed Amount monetarily restated by IPCA-IBGE variation until September 2008 reached
the amount of nine hundred, sixteen million, seven hundred, eight thousand, eight hundred, seventy-nine reais and eighty-one centavos (R$916,708,879.81); <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. The State and Sabesp,  based on a survey of the State Department of Personnel Expenses (&#147;DDPE&#148;), and due to a difference identified in the payment of &#147;social security contribution&#148;, in the nominal value of one million, twenty-three thousand, two hundred, eighty-three reais and fifty-one centavos
(R$1,023,283.51), jointly decided to adjust the nominal Undisputed Amount determined by Fipecafi to the amount of five hundred, seventy million, six hundred, ninety thousand, two hundred, eighty-three reais and eighty-four centavos
(R$570,690,283.84), which restated up to September 2008, results in the Undisputed Amount acknowledged by the State and Sabesp of nine hundred, fifteen million, two hundred, fifty-one thousand, two hundred reais and sixty-eight centavos
(R$915,251,200.68); </P>
<P align="right">
3 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_4"></A>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. the Disputed Amount corresponds to the difference between (i) the amount effectively paid by Sabesp in view of Benefits and pending of reimbursement, as recorded in its accounts and (ii) the Undisputed Amount; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. the State and Sabesp
acknowledge the amount of  six hundred, ninety-six million, two hundred, eighty-three thousand, four hundred, sixty-five reais and forty-nine centavos (R$696,283,465.49), at nominal values on the reference date of January 2008 as the Value of
Reservoirs, comprised by financial credit to be used in the payment of Undisputed Reimbursement Amount and which shall be restated only as of January 2009, as the State and Sabesp have agreed that the assets appraisal reports would be valid for one
(1) year; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IX. although the State has temporarily assumed the payment of Benefits in 2004, Sabesp was forced to resume this task by decision of 8<SUP>th</SUP> Labor District Court of S&atilde;o Paulo, rendered in a public civil action brought by the Association of Retirees and Pensioners of SABESP (proceeding
#00110-2004-3), pending of final judgment; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. the Parties are jointly endeavoring their efforts to obtain legislative authorization in order to make feasible the conveyance of Reservoirs ownership to Sabesp, thus, overcoming the legal uncertainty
caused by the public civil action brought by the Public Prosecutor Office of the State of S&atilde;o Paulo before the 12<SUP>th</SUP> Lower Treasury Court of S&atilde;o Paulo (Proceeding #1559/053/03/025681-2), which resulted in the lower court
decision and thereafter the appeal #412.899.5/9 -00 was filed, the effects of which were suspended by order of the S&atilde;o Paulo Court of Justice (Motion for Stay of Proceeding #116.474.0/0 -00) &#151; which annuls the commitment assumed by the
Parties in the Term of Acknowledgment to conveyance rights over Reservoirs grounded on Article 7, sole paragraph, S&atilde;o Paulo State Law #10,058/68, and opinion of the State Attorney&#146;s Office on Proceeding DAEE #48531/2001; </P>
<P align="right">
4 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_5"></A>

<P>
the Parties resolve to enter into this present Third Addendum to the Term of Acknowledgment (&#147;Third Amendment&#148;), which shall be ruled by the following clauses and conditions, biding the parties by themselves and eventual successors. </P>
<P align="right">
5 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_6"></A>

<P>
<B>CLAUSE 1 &#150; PAYMENT OF UNDISPUTED AMOUNT </B></P>
<P>
The State acknowledges owes to Sabesp the amount of nine hundred, fifteen million, two hundred, fifty-one thousand, two hundred reais and sixty-eight centavos (R$915,251,200.68), hereinafter referred to as &#147;Undisputed Amount&#148;, monetarily
restated up to September 2008, corresponding to the reimbursement of undisputed portion of payments made by the Company in favor of former employees or dependents between the period of January 1986 and May 2008, as benefits referred to by Law
#4,819/58 (&#147;Benefits&#148;). </P>
<P>
<B>Paragraph 1 &#150; </B>The Parties accept that the reservoirs of Taia&ccedil;upeba, Jundia&iacute;, Biritiba, Paraitinga and Ponte Nova, which comprise the Alto Tiet&ecirc; System (&#147;Reservoirs&#148;), currently owned by or under the
possession of DAEE, worth six hundred, ninety-six million, two hundred, eighty-three thousand, four hundred, sixty-five reais and forty-nine centavos (R$696,283,465.49), hereinafter referred to as &#147;Value of Reservoirs&#148;. </P>
<P>
<B>Paragraph 2 &#150; </B>Sabesp provisionally accepts the Reservoirs as part of the payment of the Undisputed Amount and offers herein a provisional acquittance to the State, establishing a financial credit corresponding to the Value of Reservoirs,
in the amount of six hundred, ninety-six million, two hundred, eighty-three thousand, four hundred, sixty-five reais and forty-nine centavos (R$696,283,465.49) . </P>
<P>
<B>Paragraph 3 &#150; </B>The outstanding balance of two hundred, eighteen million, nine hundred, sixty-seven thousand, seven hundred, thirty-five reais and nineteen centavos (R$218,967,735.19), due to difference between the Undisputed Amount and
the financial credit corresponding to the Value of Reservoirs, shall be initially paid in one hundred, fourteen (114) monthly and consecutive installments, in the amount of one million, nine hundred, twenty thousand, seven hundred, sixty-nine reais
and sixty-one centavos (R$1,920,769.61) each, the first
installment expiring on November 25, 2008 and others on same date of subsequent months or, in the event of bank holiday, on the immediately subsequent business day. </P>
<P align="right">
6 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_7"></A>

<P><B>Paragraph 4 &#150; </B>The single amount of installments shall be restated once every twelve (12) months, to include the annual variation of Consumer Price Index calculated by the Brazilian Institute of Geography and Statistics
(&#147;IPCA-IBGE&#148;), or another index to replace it, accrued of half per cent (0.5%) interest per month, and the first restatement shall occur in October 2009. </P>
<P>
<B>Paragraph 5 &#150; </B>Once verified the publication of law authorizing the conveyance of Reservoirs ownership to Sabesp: </P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I -  the amount of installments paid until the publication date of said authorizing law shall be deducted from the Undisputed Amount, both monetarily restated by IPCA-IBGE, or another index to replace it, obtaining the
&#147;Recalculated Undisputed Amount&#148; from this difference; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II -  the Recalculated Undisputed Amount shall be again divided by installments for the remaining term until the limit of 114 months as of the date of execution hereof, and the
installments shall be monthly and consecutive, the first installment shall expire within ten (10) business days as of the recalculation date of the Undisputed Amount; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III -  the financial credit corresponding to the Value of Reservoirs shall be
monetarily restated by IPCA-IBGE, or another index to replace it, as of January 2009 until the publication date of the aforementioned law, and used to advance as much installments immediately falling due as sufficient, and Sabesp shall give
provisional acquittance of these installments to the State; </P>
<P align="right">
7 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_8"></A>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV -  the installments amount shall be restated once every twelve (12) months, as of the recalculation date of the Undisputed Amount, to include the annual variation of IPCA-IBGE, or another index to replace it, accrued of half per cent (0.5%)
interest per month. </P>
<P>
<B>Paragraph 6 &#150; </B>In relation to the payment of part of Undisputed Amount by means of Reservoirs, it is established that the final acquittance shall be offered only when the areas of Reservoirs are formally registered on behalf of Sabesp, at
the appropriate Real Estate Registry Office. </P>
<P>
<B>CLAUSE 2 &#150; CONVEYANCE OF RESERVOIRS POSSESSION AND OWNERSHIP TO SABESP </B></P>
<P>
The rights to use and enjoy the Reservoirs are immediately conveyed to Sabesp and may also assign them to third parties, regardless of any remuneration or indemnification to any Party or third party, and DAEE and Sabesp shall be liable for taking
the measures necessary to Sabesp actually assumes the control over the Reservoirs within sixty (60) days as of the execution hereof. </P>
<P>
<B>Paragraph 1 &#150;</B> A bill authorizing the following shall be forwarded to the Legislative Assembly of the State of S&atilde;o Paulo: </P>
<P>
I -  the donation of Reservoirs by DAEE on behalf of the State; and <br>
II -  the subsequent disposal of Reservoirs by the State on behalf of Sabesp. </P>
<P>
<B>Paragraph 2 &#150;</B> As soon as the legislative authorization for the conveyance of Reservoirs ownership is obtained, the Parties shall be liable for taking the measures necessary for the public formalization and subsequent conveyance of
ownership at the appropriate Real Estate Registry Office. </P>
<P align="right">
8 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_9"></A>

<P>
<B>Paragraph 3 &#150; </B>Eventual expenses related to fees and charges incurring on the conveyance of Reservoirs ownership to the State shall not be borne by Sabesp under no circumstance. </P>
<P>
<B>Paragraph 4 </B>&#150; Eventual expenses related to fees and charges incurring on the conveyance of Reservoirs ownership from the State to Sabesp shall be borne by the Company. </P>
<P>
<B>Paragraph 5 &#150; </B>The expenses directly or indirectly related to indemnifications for expropriations shall be borne by the State or DAEE, where applicable. </P>
<P>
<B>Paragraph 6 &#150; </B>The State shall ensure DAEE the resources necessary to conclude the action of compensation for expropriation under its responsibility.<B> </B></P>
<P>
<B>Paragraph 7 &#150; </B>The State shall be liable for the risk of eviction before SABESP and it successors.<B> </B></P>
<P>
<B>CLAUSE 3 &#150; REGULARIZATION OF REIMBURSEMENTS RELATED TO THE MONTHLY FLOW OF BENEFITS </B></P>
<P>
While Sabesp is liable for the flow of monthly payment of Benefits, the State shall reimburse Sabesp based on the criteria identical to those applied when determining the Undisputed Amount. </P>
<P>
<B>Paragraph 1 &#150; </B>Should there be no preventive court decision, the State shall assume the flow of monthly payment of Benefits portion deemed as undisputed, calculated based on criteria identical to those applied when determining the
Undisputed Amount.<B> </B></P>
<P align="right">
9 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_10"></A>

<P>
<B>Paragraph 2 &#150; </B>Within twelve (12) months as of the execution hereof, the State shall provide the internal operating structuring necessary to determine and process the reimbursements. </P>
<P>
<B>Paragraph 3 &#150; </B>While the State&#146;s internal operating structuring has not been concluded to determine and process the reimbursements, Sabesp shall maintain Fipecafi so that it monthly calculates the reimbursement amount, applying
criteria identical to those used when determining the Undisputed Amount.<B> </B></P>
<P>
<B>Paragraph 4 &#150; </B>Reimbursements shall occur within ten (10) business days as of the date Fipecafi submits the calculation report of monthly reimbursement to the State. </P>
<P>
<B>Paragraph 5 &#150; </B>Should reimbursement do not occur within the term established in the previous paragraph, the monetary restatement by variation of IPCA-IBGE shall be applied, or another index to replace it, accrued of half per cent (0.5%)
interest per month. </P>
<P>
<B>Paragraph 6 &#150; </B>The first payment due as reimbursement of monthly flow shall encompass the amounts overdue as of June 2008, monetarily restated by IPCA-IBGE, or another index to replace it, in order to update the monthly flow owed by the
State to Sabesp. </P>
<P>
<B>CLAUSE 4 &#150; DISPUTED AMOUNT</B> </P>
<P>
The Disputed Amount is composed of the difference between (i) the Undisputed Amount corresponding to the amount of five hundred, seventy million, six hundred, ninety thousand, two hundred, eighty-three reais and eighty-four centavos
(R$570,690,283.84) and (ii) the amount effectively paid by the Company as Benefits until May 2008, corresponding to the amount of nine
hundred, fifty-four million, one hundred, twenty-one thousand, six hundred, ninety-two reais and thirty-seven centavos (R$954,121,692.37) not reimbursed by the State, which represents three hundred, eighty-three million, four hundred, thirty-one
thousand, four hundred, eight reais and fifty-three centavos (R$383,431,408.53), in nominal values. </P>
<P align="right">
10 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_11"></A>

<P><B>Paragraph 1 &#150; </B>The Disputed Amount shall include the monthly differences calculated as of June 2008 between (i) what is effectively reimbursed by the State as undisputed portion of monthly flow and (ii) the amount effectively paid by the
Company as Benefits. </P>
<P>
<B>Paragraph 2 &#150; </B>Sabesp shall forward to the State Government Attorney&#146;s Office (&#147;PGE&#148;) a substantiated petition in order to obtain a new examination of disagreements that gave rise to the Disputed Amount. </P>
<P>
<B>Paragraph 3 &#150; </B>The State reiterates herein its willingness to observe the fiduciary duties of Sabesp&#146;s managers, in order to act in the best interest of the Company, without prejudice of provisions in Article 238 of Law 6,404/76.
Thus, the State undertakes not to exercise the share control power to guide Sabesp&#146;s managers to waive eventual credits to which the Company deems itself the beneficial owner vis-&agrave;-vis the State. </P>
<P>
<B>CLAUSE 5 &#150; EFFECTIVENESS OF TERM OF ACKNOWLEDGMENT </B></P>
<P>
The clauses and conditions of the Term of Acknowledgment shall remain effective, except for those expressly amended by this present instrument. </P>
<P>
In witness whereof, the Parties execute this present instrument in four counterparts of equal tenor and form, before the witnesses below. </P>
<P align="right">
11 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_12"></A>

<P align="center">
S&atilde;o Paulo, November 17, 2008. </P>
<P>
<B>Parties: </B></P>
<P align="center">
<B>STATE OF S&Atilde;O PAULO </B></P>
<P align="center">
Mauro Ricardo Machado Costa <br>
Finance Secretary </P>
<P align="center">
<B>DEPARTMENT OF WATER AND ELECTRICITY </B></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=49%></TD>
	<TD width=2%></TD>
	<TD width=48%></TD></TR>
<TR valign="bottom">
	<TD align=center>Ubirajara Tannuri Felix&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Ismar Lissner&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>Superintendent&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Chief Financial Officer&nbsp;</TD></TR>
</TABLE><BR>
<P align="center">
<B>COMPANHIA DE SANEAMENTO B&Aacute;SICO DO <br>
ESTADO DE S&Atilde;O PAULO &#150; SABESP </B></P>
<TABLE border=0 width=100% align="center" cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=48%></TD>
	<TD width=2%></TD>
	<TD width=49%></TD></TR>
<TR valign="bottom">
	<TD align=center>Gesner Jos&eacute; de Oliveira Filho&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Rui de Britto &Aacute;lvares Affonso&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>Chief Executive Officer&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Chief Financial Officer and&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Investor Relations Officer&nbsp;</TD></TR>
</TABLE><BR>
<P align="left">
<B>Intervening Party: </B></P>
<P align="center">
<B>SANITATION AND ENERGY SECRETARIAT </B></P>
<P align="center">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dilma Seli Pena <br>
Sanitation and Energy Secretary </P>
<P>
<B>Witnesses: </B></P>
<TABLE border=0 width=100% align="center" cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=52%></TD>
	<TD width=2%></TD>
	<TD width=45%></TD></TR>
<TR valign="bottom">
	<TD align=center>Claudia Polto da Cunha&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Lucas Navarro Prado&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>RG 18.205.781-1 SSP-SP&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>RG 886.964 SSP-MS&nbsp;</TD></TR>
</TABLE><BR>
<P align="right">
12 </P>

<H5 align="left" style="page-break-before:always"></H5>
<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B><u>SIGNATURE </u></B></FONT><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV align=justify><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized, in the city S&#227;o Paulo, Brazil. </FONT></DIV>
<p></p>
<DIV align=justify><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000">


Date: November 28, 2008</FONT></DIV>
<p></p> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="60%" BORDER="0">
<TR>
<TD VALIGN="top" COLSPAN="3" WIDTH="50%">
<DIV align=left><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"> <b> Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP </b> </FONT></DIV></TD>
</TR>
<TR>
<TD HEIGHT="16"> </TD>
</TR>
<TR>
  <TD VALIGN="top"><DIV align=left><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">By:</FONT></DIV></TD>
  <TD VALIGN="bottom" ALIGN="center"><DIV ALIGN="center">
    <DIV ALIGN="center">/S/&nbsp;Rui de Britto &Aacute;lvares Affonso&nbsp;</DIV>
    <HR NOSHADE SIZE=1 COLOR="#000000" ALIGN="left">
  </DIV>      </TD>
  </TR>
<TR>
<TD> <FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center" WIDTH="43%">
<DIV ALIGN=left><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Name: Rui de Britto &#193;lvares Affonso </FONT></DIV>
<DIV ALIGN=left><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Title: Chief Financial Officer and Investor Relations Officer  </FONT></DIV></TD>
</TR>
</TABLE>



</DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<P>&nbsp;</P>
<P></P>

<DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>FORWARD-LOOKING STATEMENTS </B></FONT></DIV>

<P align=justify><FONT FACE="'Times New Roman, Times, Serif'" SIZE=2>
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.
 </FONT></P>


<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">
</BODY>

</HTML>


</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
