Investor Presentaiton slide image

Investor Presentaiton

PANORAMA OF THE PRIVATE SECTOR'S PARTICIPATION IN SANITATION 2021 Sanitation today and the performance of private operations In general, the improvement of coverage provided by water and sewage services in Brazil has not been significant, and this re- flects the dearth of investments made in this sector over the last five years. If we make a comparison with the period been a slight fall in the provision of water services in urban areas (which dipped from 93.08% in 2015 to 92.95% in 2019) and a slight improvement in the percentage of ar- eas with treated sewage, with regard to the water consumed (42.67% in 2015, rising to 49.09% in 2019). between 2015 and 2019, we see there has Without the bases of a legal framework that would lead to competition, as is the case nowadays with the current Law No. 14,026/20, private enterprise had shown practically no change in its participation within this period, and now provides full or partial services, according to the model of concession that has been observed in each municipality, to 15% of the population (32.5 million people). However, even though they are present in only 7% of all municipalities, the private concessions in the sanitation sector already account for 33% of the total sum invest- ed by the companies of this segment. In 2019, there was a total investment of BRL 4.8 billion made by private com- panies, compared with a total investment of BRL 14.8 billion considering all operators. These investments are the result of 191 dif- ferent contracts that have been signed, rang- ing from full and partial concessions to PPPS and subdelegations, involving a total of 392 cities, of which 42% are considered small municipalities with up to 20 thousand people, and another 22% are municipalities with be- tween 20 thousand and 50 thousand people. The following are some successfully ex- amples of municipalities with concessions that are ensuring the universalization or have already achieved it. 26 26 GRAPH 3 A NEW SOCIAL AND ECONOMIC FRONTIER FOR BRAZIL Evolution of water and sewage service coverage (%) Source: SNIS 2015-2019 93.08 92.96 92.98 92.78 92.85 Treated sewerage rate, considering consumed water Sewerage collection 83.30 83.30 83.50 83.70 83.60 rate 59.44 58.04 55.17 58.06 57.02 49.09 42.67 44.92 46.00 46.25 2015 2016 2017 2018 2019 Rate of general water supply services Rate of urban water supply services GRAPH 4 Population served by private operators (%) Source: SPRIS Popula- tion served by private companies 31.6 million Total population of Brazil: 211.8 million 15% 27
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