Rio Grande do Sul to invest proceeds from Corsan privatization in infrastructure

Brazil’s Rio Grande do Sul state is looking to invest the proceeds from the privatization of its water utility Corsan in infrastructure, mainly highways.

In December 2022, a consortium formed by water firm Aegea Saneamento e Participações and investment firms Perfin and Kinea acquired Corsan in an auction for 4.15bn reais (US$851mn).

The contract was not signed until July, as the bidding process was challenged by Corsan union Sindiágua, which claimed that the economic studies used as a basis for the auction and for setting the minimum price were flawed.

According to the state’s logistics and transport secretary Juvir Costella (pictured), some proceeds were earmarked for the rehabilitation of roads RS-630, RS-324, RS-129 and RS-330. “This year, our total investments in the road segment will reach 500mn reais,” Costella said during an event hosted by Rio Grande do Sul business federation Federasul. 

Around 1bn reais will be for a rural paving plan, Costella said.

The state also wants to auction more highway concessions. “State-run road firm Empresa Gaúcha de Rodovias manages 630km of highways and during this year and through 2024, we are planning to advance with the concessions of certain stretches,” he said.