Based on feasibility studies, the plan involves building landfill facilities to serve six cities.
The initiative is being supported by Brazil's health foundation Funasa.
The country's second largest water utility placed 25-year bonds worth approximately US$48.6mn.
Several projects in the capital are on hold due to a supply deficit at the Las Pavas water treatment plant, according to daily La Prensa Gráfica.
The initiative, which falls under the state's Pró-Billings reservoir cleanup program, is receiving funding support from national development bank BNDES and Japan International Cooperation Agency.
The current administration has already built over 200 water reservoirs to improve irrigation in rural areas of the country and to address the effects of climate change.
The pipeline eruption left 80,000 without access to potable water.