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The mayor of Alegrete city in Brazil's Rio Grande do Sul state, Erasmo Guterres, is requesting 45mn reais (US$26.8mn) from state water utility Corsan to carry out works to improve the city's basic sanitation, a Corsan spokesperson told BNamericas.
The request, which was made to Corsan president Arnaldo Dutra, involves funding that the utility was allocated under the country's growth acceleration plan (PAC) for sanitation projects in the city of Sao Borja.
"The funding was originally allocated to Sao Borja but it has not been forwarded to the municipality as it [the municipality] is opting to privatize sanitation services without Corsan's involvement," the spokesperson said.
As Brazilian sanitation law prohibits the transfer of public funding to private companies, Corsan will reallocate the money if Sao Borja launches tenders for the work.
In October last year, Corsan transferred 10mn reais in federal funds to the city of Santa Rosa for sewerage projects, after Uruguaiana city decided to concession sanitation services to private companies.