São Paulo state creates program to spur solid waste PPPs

São Paulo state is looking to encourage more municipalities to use PPPs to improve their solid waste management.

"The São Paulo government is working to create and leave a legacy… we need to do our part and recover the environment, reduce emissions and have good ideas for the energy transition, waste management, green economy and resilient cities," said governor Tarcísio de Freitas at a ceremony on Wednesday to celebrate World Environment Day.

The state signed a decree creating a program called Integra Resíduos to improve solid waste management through public-private partnerships in municipalities. 

Currently, trucks from 185 municipalities have to travel more than 50km to dispose of waste in one of around 300 landfills. Of these, 170 have less than five years left of useful life. 

“Integra Resíduos’ objective is to focus on waste disposal and recovery, helping municipalities, especially smaller ones, to develop technical feasibility studies, the economic-financial and environmental aspects, the legal framework, the governance structure and even the mapping of potential investors for public-private partnerships”, said Natália Resende, the state’s secretary for the environment, infrastructure and logistics.

There are certain challenges facing the new program, according to Gustavo Gusmão, the head of infrastructure, PPPs and the public sector at consultancy EY Brasil.

"The solid waste sector still needs to make further progress in terms of regulation, and PPPs in this sector don’t have a solid guarantee model regarding the government's counterpart role in long-term contracts," he told BNamericas.

Another challenge for creating more PPPs is the limited number of private companies operating in the sector, said Gusmão.

Meanwhile, the state announced a plan to invest 250 million reais (US$47.5mn) over the next 12 months in the desilting of up to 250 watercourses in 154 municipalities, and a 79.5mn-real investment in a 25km revitalization project for the Pinheiros river.