Córdoba and Santa Fe signed an agreement to create a bi-provincial unit in charge of relevant studies and finding the financing.
The project is crucial to guarantee water supply in Brazil's drought-stricken northeast region.
Consorcio Aguas de David, the group responsible for the project in Panama's Chiriquí province, was given a two-week deadline to get back to work.
João Doria plans to use the resources from an additional shares sale to expand Sabesp's services.
Odebrecht, Queiroz Galvão, OAS, and some individuals must pay US$24mn due to irregularities in the Pirapama water system project.
A representative from the firm said that authorities are willing to allow the disgraced Brazilian company to keep operating in the country.
The alleged illegal payments were related to the construction of the Francisco J. Múgica dam in Michoacán state.