Spotlight: The new water, sewerage and irrigation projects announced in Brazil

Brazil is witnessing the continued proliferation of projects in sewerage, water and irrigation.

These initiatives are largely driven by a wave of public and private sector investments in the sanitation sector, aimed at meeting regulatory obligations for universal water and sewage coverage by 2033. 

Additionally, the increasing frequency of extreme weather events – particularly prolonged droughts in regions like the northeast – highlights the urgent need for irrigation projects and to secure water supply.

BNamericas takes a look at some of the initiatives announced recently.

PERNAMBUCO

Pernambuco state has unveiled a program to invest a total of 6.1bn reais (US$1.05bn) under the initiative called Águas de Pernambuco.

Of the total investment, 3.9bn reais will be allocated to water projects, while 2.2bn reais will be channeled to sewerage initiatives. A state government spokesperson told BNamericas that the funding will come from various sources: 1.9bn reais from the federal government, 1.3bn reais from the state of Pernambuco, 1.4bn reais from state-run water company Compesa and the remaining amount from public-private partnership contracts to be signed.

Under this program, the state aims to enhance water security, investing 712mn reais for the construction of dams and 247mn reais for the rehabilitation of existing infrastructure.

RIO GRANDE DO NORTE

In a related development, the federal government this week announced the allocation of 640mn reais for investments in sanitation, education, urban mobility and housing in Rio Grande do Norte state.

"Of the total, over 409mn reais will be invested in sewage projects in the municipalities of Açu, Apodi, Natal, Parnamirim and São Paulo do Potengi," the federal government stated in a release.

The funding will be partially financed through state-run bank Banco do Nordeste, with the works expected to benefit a population of 1.3mn people.

BAHIA

Brazil's integration and regional development ministry (MIDR), has authorized a tax incentive under the program Reidi, facilitating investments of over 800mn reais in an irrigation project in Bahia state.

"To bolster irrigated agriculture in Brazil, MIDR approved a project this week for the installation of irrigation systems in the municipality of Xique-Xique, Bahia, totaling 836mn reais. The project aims to expand the production of bananas, beans, soybeans, corn and cotton over an area of more than 8,000ha and has been included in the special incentive regime for infrastructure development (Reidi)," the ministry announced.

The project will be carried out by the concessionaire Germina Irecê Agropecuária e Irrigação SPE, which will benefit from a tax incentive of 38mn reais to facilitate investments in the purchase of equipment and services.

This initiative is part of a concession contract awarded in 2022 to the investment fund BRLT 210 Fundos de Investimento aimed at expanding irrigation in Bahia. The contract, the first of its kind in Brazil, is projected to generate 1.1bn reais in investments over its 35-year term.