Brazil's water regulator publishes update of coverage guidelines

Brazil’s water regulator ANA published an update of the guidelines to meet coverage targets.

The sector has been experiencing a profound transformation with a rapid uptick in projects and investments since a regulation approved in mid-2020 required all municipalities to provide full water supply and sewage service coverage by 2033.

Faced with the goals, which were considered ambitious for a country where half the population was without adequate water and waste services, Brazil made room for growing participation of the private sector in an area previously dominated by state-run firms. 

According to the updated guidelines, the supply of drinking water must be in accordance with health ministry regulations. 

"Furthermore, sewage treatment processes must result in effluents treated in accordance with the relevant standards and with the respective federal, state, municipal and district legislation, permits and authorizations for water resources and the environment," ANA said in a statement.

According to ANA, the guarantee of full coverage will be the responsibility of the companies that are assuming the contracts, while "sub-national regulatory entities" must adopt a system for monitoring drinking water supply and provision of sewage services.

The update of the sector's standards was published in the federal gazette and the complete guidelines can be seen here.

"Sanitation is without a doubt one of the infrastructure sectors that will receive the most significant investment in the coming years, given the new regulations and mandatory increase in service coverage," Roberto Guimarães, planning and economics director at industry and infrastructure association ABDIB, told BNamericas.

Brazil currently has 48 sanitation projects in the structuring phase, some of which could be offered to the private sector this year.

The combined investment in the concessions and PPPs is put at 64.3bn reais (US$12.6bn), according to figures compiled by water and sewerage concessionaires association Abcon upon a request from BNamericas. The initiatives will serve more than 34.2mn people.

The country has seen 40 auctions since the new regulation came into effect, offering 10 regional contracts and 30 municipal ones totaling 103bn reais in investments.