Minas Gerais water utility plans to invest US$2.8bn through 2029

Brazil's Minas Gerais state water utility Copasa announced a plan to invest 16.9bn reais (US$2.8bn) in 2025-29 to reach 100% coverage of sanitation services.

According to the regulations for the sanitation sector, approved in mid-2020, 99% of the population must have access to treated water and 90% to sewage collection and treatment services by 2033. If cities do not reach this level, they will be prevented from receiving resources from the federal government. 

"In just a few years, with works throughout the state, sewage service coverage grew from around 70% to more than 77%. As for water, the rates already exceed 99.6%, and the objective now is to ensure that 100% of the population served by Copasa receives not only treated water, but water of ideal quantity and continuously," the company said in a statement.

In 2025, the company is planning to invest 2.54bn reais compared with 2bn reais this year.

In 2026 the plan is to invest 3.42bn reais and the same amount in 2027, then 3.72bn reais in 2028 and 3.82bn reais in 2029.

With the new framework, the segment – previously dominated by state-run firms – has seen the entry of numerous private sector players in recent years via privatizations, concessions and PPPs. 

“The entry of private sector competitors intensifies competition and challenges previously protected positions. Therefore, Copasa is moving to improve its competitiveness in relation to the market, but also to improve the provision of services, seeking to obtain a social license to operate," said company president Guilherme Duarte.