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.
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