Investor Presentaiton
PANORAMA OF THE PRIVATE SECTOR'S PARTICIPATION IN SANITATION 2021
PPPs
Under Brazilian law, public-private part-
nerships (PPPs) are administrative con-
cession contracts that can be executed in
sponsored or administrative mode, as set
forth in Law 8,897 (Concessions Law).
In sponsored concession, the Government
makes a financial contribution (cash re-
turn) in addition to fees paid by the user.
In administrative concession, the private
partner is compensated through public con-
siderations, no fees being charged to users.
One common combination is the sew-
age PPP where there is the presence of
the private sector through investments in
management and infrastructure; this is in
addition to the operation, while the public
sanitation company continues to take care
of services to the end user, the inspection
of services, and the administration of the
resources obtained through the task. to
take care of end-user service, supervision
of services and administration of resources
obtained through the task.
There are important sanitation PPPs in op-
eration in the Brazilian states of Pernam-
buco, Alagoas, São Paulo, Rio de Janeiro,
Espírito Santo, Mato Grosso do Sul, Minas
Gerais and Bahia.
GRAPH 37
Distribution of PPPs by State
Source: SPRIS
MS
MG
1
一唔
TABLE 8
Total population served and investment materialized in
2019 in PPPS
Source: SPRIS
PPPs
* Regarding the benefited population.
96
Benefited
population
Investment
materialized in
2019
Per capita*
investment in
2019
14,548,031
BRL 2,212,429,514
BRL 166
A NEW SOCIAL AND ECONOMIC FRONTIER FOR BRAZIL
PE
1
AL
2
31
BA
ES
3
SP
7
RJ
2
RS
1
Subdelegations
Models provided for by law 8,987/85 (Con-
cessions Law), by which the sanitation ser-
vice provider transfers some of its charges
to third parties (delegated company).
The company selling goods or services
through a bidding process assumes all
the rights and obligations of the delegated
company within the limits of the delegation.
There are delegation of sanitation services
to the private sector operating in the States
of Goiás and Piauí.
Here we must mention that, after due ap-
proval of the new milestone of sanitation,
subdelegations were capped at 25% of the
value of contracts awarded to subdelegat-
ed companies.
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