Brazil must double annual water investments to achieve coverage goal

Brazil needs to step up annual water and waste investments to achieve universal coverage by 2033.

Congress approved the universal coverage law in 2020, and municipalities that fail to comply could become ineligible for federal funds. 

"Progress is still timid and if we want to achieve universalization in a timely manner by 2033, it is necessary that investment more than doubles, from 22bn reais [US$4.4bn] annually to almost 47bn reais annually," Gesner Oliveira, the head of business consultancy GO Associados, was quoted as saying in a report by sanitation NGO Instituto Trata Brasil.

"Such a change will only occur with enormous coordination between all agents, supervised by public authorities," Oliveira, who is a former CEO of São Paulo state water utility Sabesp, said.

Still, "the sector is beginning to react and see improvements in some indicators, especially in municipalities where auctions [for PPPs and concessions] took place recently," he added

The recently published report takes 2022 as the base year and found that lack of access to drinking water impacts 32mn Brazilians and deficient sewage collection 90mn out of a total population of 203mn people.

Sewage collection coverage rose from 55.8% in 2021 to 56% in 2022, while waste treatment increased from 51.2% to 52.2%.

See the report in the documents box in the top-right corner of the screen.

When the universal coverage law was passed, half the population faced inadequate coverage.

The law also eases private participation via PPPs and concessions, as the sector has been dominated by public firms.

In a recent series of interviews BNamericas conducted with top project finance executives of Brazil’s main banks, the water sector is considered among the most promising in terms of new projects and financing needs.