Industry blames red tape for low PAC sanitation spending in 2010

- Monday, February 7, 2011

Industry blames red tape for low PAC sanitation spending in 2010

Brazil's sanitation sector has blamed an excess of red tape for the government's low disbursal of funds for sanitation projects in 2010 under its growth acceleration plan (PAC).

Of the 10bn-real (US$5.98bn) annual PAC budget for sanitation, the government released just 4.2bn reais in 2010, according to a release from state sanitation companies association Aesbe.

When PAC began in 2007, the slow disbursal of funds was attributed to the limited number or poor quality of projects. While this situation has improved, the pace of sanitation spending is still a problem, the association said.

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Aesbe and its members have asked the cities ministry to carry out a diagnosis and provide a concrete solution to the issue, and President Dilma Rousseff has also asked ministries to simplify procedures to cut down on red tape.