Investor Presentaiton
PANORAMA OF THE PRIVATE SECTOR'S PARTICIPATION IN SANITATION 2021
A NEW SOCIAL AND ECONOMIC FRONTIER FOR BRAZIL
South
This is the third region with most investment
needs in order to universalize sanitation.
The state with greatest need is Rio Grande
do Sul. Paraná is the one with the lowest fi-
nancial needs. Strangely enough, this state
has more externalities than other states in
the region, and also shows the coverage rate
for water and sewage service.
The total externalities generated are almost
twice the total investment. Despite the low
coverage and great investment needs, the
universalization of sewage services in the
South region would come before the univer-
salization of water services, as these would
have a demand which is only a quarter of
that of sanitary sewage systems, and great-
er coverage (89% of the Southern popula-
tion is already served by water systems).
The investment needs for water services
in the Southern region accounts for 13%
of the total national costs, more than the
North and Midwest regions.
The sewage collection network represents
the most costly component of the total in-
vestment needs (60%). As the third most
populous region, water service costs in the
Southern region account for 20% of the to-
tal national cost of universalization.
GRAPH 19
Investments in the Southern region 2018-2033 (BRL
billion)*
Source: KPMG Study / ABCON SINDCON
PR
BRL 13.3 bi
South
BRL 89 billion
SC
BRL 30.4 bi
RS
BRL 44.9 bi
Application of resources x
Impacts on society
More than just taking treated water out
to the population, collecting and treating
sewage in cities, investments in sanitation
services represent benefits for society in
many aspects. In addition to generating
income and creating jobs, the results are
reflected in people's lives. Treated water
and sewage mean better health and better
education indicators.
This social and environmental impact is
recognized worldwide. However, we cannot
play down the economic impact in the sec-
tor, with job creation and income. This fact
needs to be highlighted, especially in the
current situation marked by a resumption
of economic growth.
According to a survey by ABCON SINDCON
based on data from the System of National
Accounts (IBGE), and included in the con-
juncture analysis Impact of investments
in water and sewage supply in the sector's
production chain (ABCON SINDCON, Octo-
ber, 2020), the sewage supply, collection
and treatment sector represents about
0.58% of GDP (BRL 40 billion).
In addition to the scope for job creation, in-
vestments in sanitation generate impacts
in a long production chain, such as in the
manufacture of metal products with the
production of metal reservoirs and pipes,
which, in turn, will bring additional demand
for the steel and aluminium industry.
There is also increased demand for the pro-
duction of plastic and rubber products, such
as pipes and valves, as well as additional de-
mand for the non-metallic materials industry
that produces cement and concrete.
Another relevant sector is the electron-
ics industry, with the demand for control
boards, automation, installation materials
and telemetering. In a nutshell, there is an
extremely relevant production chain that is
activated when investing in water supply
and sewage treatment.
Based on the Input-Output Model method-
ology, it is possible to forecast the impact
on the economy when considering the total
investment provided for the universalization
of water and sewage services in the country.
Considering the investment of about BRL
498 billion for the expansion of water sup-
ply and sanitary sewer systems, one can
observe a significant impact on the Brazil-
ian economy. The multiplier effect would in-
ject about BRL 1.4 trillion into the economy,
with the generation of more than 14 million
jobs over the investment period and almost
BRL 90 billion in tax collected.
* Amount required for network expansion. Does not consider the value necessary for recovery of depreciation.
Note: Rounding can lead to 1 percentage point variations, for more or less.
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