Investor Presentaiton
PANORAMA OF THE PRIVATE SECTOR'S PARTICIPATION IN SANITATION 2021
A NEW SOCIAL AND ECONOMIC FRONTIER FOR BRAZIL
The path of sanitation development to-
wards universalization has been a long one.
However, since 15 July 2020, when Law
14,026/2020 was passed and published,
with a new sanitation milestone, compa-
nies operating in the sector have got an im-
portant ally.
Achieving universalization of water and sew-
age services in the country in the medium
term has become much more tangible as,
after three decades of delay and three years
of discussion in Brasilia, a new reality for the
sanitation sector is now being constructed.
Sanitation has become a priority. The change
that will increase the sector's investments is
under way. There is a frontier to be explored,
and the private sector will play a key role in
this effort for universalization.
Today, considering the recent auctions of
Casal, Sanesul, Cariacica and Cedae, pri-
vate operators directly or indirectly serve
17% of the population. We expect them to
reach at least 40% by 2030.
The impact of this long-awaited evolution
of sanitation will have an important effect
upon the economy. The sector will drive the
country's economic recovery after the health
crisis, in job creation and in investments.
GRAPH 9
Investment provided for by the National Sanitation Plan
Basic (Plansab) X Investment made
Source: Plansab e SNIS
38%
Investments Made
BRL 29 billion
Planned investments that were not made
BRL 44 billion
Total investments forecast for 2018 and 2019, in order to reach universalisation in
2033, according to Plansab: BRL 77 billion
GRAPH 10
Evolution of investments (BRL billion) x GDP growth (%) -
2003 to 2019
The challenge of
universalization
Service deficit to the Scarcity of
population
The shortage of sanitation services is
grave: it affects some 48% of the popula-
tion, which works out at 101 million people,
who do not have sewage coverage, and
16% who do not have water supply. This
means that some 34 million people do not
have drinking water in their taps, according
to a study conducted by KPMG 1 study in
partnership with ABCON SINDCON.
investments
The KPMG/ABCON SINDCON study points
out that the recent investments made in
sanitation were not enough to meet the
goals set by Plansab - National Sanitation
Plan, which means less coverage and fewer
work projects, thereby generating a deficit
that accumulates over time.
(1) How much does it cost to universalize sanitation in Brazil, updated version, 2021
40
Source: SNIS and IBGE
5.8
4.0
3.2
7.5
GDP change
Investment
6.1
15.6
5.1
14.4
12.8/13.0
4.0
11.7
12.6 12.8
3.0
13.0 3.5
13.1
11.5
11.0
1.9
1.0
1.3 1.1
0.5
9.0
1.1
8.6
7.4
6.7
7.0
6.2
-0.1
-3.6
n
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
Distribution of Investments Made between 2003 and 2019, by Brazilian regions
CO
S
9%
15%
SE
54%
NE
18%
N
4%
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