Bahia state’s growth plans for sanitation, mining and renewable energy

Brazil’s Bahia state will evaluate PPP contracts to increase water and sewage services.

"We have a major gap regarding sanitation coverage in our state, and we’re evaluating very carefully, including the federal government's PAC program, how to resolve this issue," Jerônimo Rodrigues, the governor of the northeastern state, told BNamericas.

In the municipalities that border the São Francisco river, São Francisco and Paraíba valley development company Codevasf used to perform much of the necessary sanitation works in the past, but in the last 10 years it was not very active in those municipalities, said Rodrigues.

"We know that there is a law that must be respected, and we will evaluate the best format for us to comply with the law, whether through PPPs or public investments," he added.

According to the country’s sanitation regulations, all municipalities must achieve complete water and sewage coverage by 2033, or risk losing access to federal funding.

In Bahia, most municipalities are served by state-run water utility Embasa. 

In Embasa’s case, Rodrigues ruled out following the privatization trend seen in some other states in recent years. 

Mining 

Bahia has ambitious plans for the mining sector, where it aims to cement its status as a hub. 

Rodrigues highlighted the decision of Brazilian mining association Ibram to hold its annual event, Exposibram, in Bahia in 2025. 

"We managed to bring Exposibram to our state next year. With this we will have the opportunity to show market participants the state’s full potential in the mining area," he said. 

In recent years, Bahia has occupied third or fourth place among the largest mining states in terms of production and revenues, behind leaders Minas Gerais and Pará, and competing for the bronze medal with Goiás.

Bahia is expected to be third in terms of new mining investment in 2024-28, with Ibram estimating it will receive US$9bn in that period.

The state currently has major production of gold, copper and nickel, while iron ore output is set to increase due to the Pedra de Ferro project.

Renewable energy 

Meanwhile, the state is targeting renewable energy as a growth area.

"This year we consolidated our status as the state in Brazil with the highest wind energy generation, and we will greatly increase this leadership in the coming years due to a series of new projects," said Rodrigues. 

"To meet the demand for these new projects, we want to create a workforce training program and also seek to attract more companies to our state."

Local legislators are currently debating a bill that will stimulate the production and use of renewable energy in the state.

The bill includes financing lines for the acquisition of machinery and equipment to be used in renewable energy projects, tax breaks, and a clean-energy incentive program for multiple areas.