Investor Presentaiton slide image

Investor Presentaiton

PANORAMA OF THE PRIVATE SECTOR'S PARTICIPATION IN SANITATION 2021 The dawn of a new era in sanitation A NEW SOCIAL AND ECONOMIC FRONTIER FOR BRAZIL 3 PREMIO SUSTENTABILIDADE 2019 It took 25 years for the current Regulatory Framework for Sanitation to be approved after the enactment of Law 8,987, which in 1995, for the very first time, allowed pri- vate contracts lasting more than five years in Brazil. This was essential so that the concession contracts - including those for water and sewage services - could be fea- sible, due to their characteristic of having long-term return on investment. The Brazilian population spent all this time without getting any universalized services of high-quality drinking water, and sewage collection and treatment, all essential to their health, improvement of quality of life, and well-being. During this time, ABCON SINDCON has battled on all fronts to reverse this calam- itous situation, seeking to stop intentions aiming at maintaining the status quo of inefficiency, to the detriment of each citi- zen's constitutional right to water supply and sewage services. The "Programme Contracts" were finally for- bidden and the municipal ownership of wa- ter and sewage services was confirmed. In addition, regionalized provision of services was encouraged, including in municipalities of local interest, thereby making sure of fea- sibility and legal certainty so that new bid- ding processes could take place, without the exclusion of smaller municipalities and/or those that would not be feasible in isolation. Under a new name, the National Water and Sanitation Agency (ANA) has obtained fed- eral regulation status, as sought for many years, considering the subnational nature of this market. We have also had the preparation of reg- ulatory decrees with regard to this new framework, including the one dealing with the Economic and Financial Capacity of service providers. Legal Certainty has been established, this being something that investors and private operators had been seeking in Brazil for over two decades. With the auctions of Casal, Cesan (Cariac- ica), Sanesul and Cedae, as well as those already being considered by the BNDES, the private market will have grown, in two years, more than it grew in 25 years. The population is to benefit and shall re- ceive, after free competition, quality ser- vices that are both regulated and efficient; this shall be achieved through contracts based on strict targets, and tariffs compat- ible with the users' ability to pay, including plans for a system of social tariffs for those people who need this. If we had to sum it up in one word, we could call it CITIZENSHIP, where the right to san- itation is observed in line with the terms of the 1988 Brazilian Federal Constitution, and shall be accessed by all, indiscriminately. The new law, through an entrenchment Carlos Henrique da Cruz Lima clause, also requires universalization of ser- vices (99% for drinking water and 90% for sewage collection and treatment) by 2033. Chairperson of the Board of Directors of ABCON SINDCON from July 2019 to June 2021. 9
View entire presentation