Ji-Paraná city council to vote on privatizing water services

Tuesday, August 30, 2011

The city council of Ji-Paraná in northern Brazil's Rondônia state has decided to vote on a move to privatize potable water and sewerage services, a municipal spokesperson told BNamericas.

The local government has been considering privatizing services since late May over what it perceives as a lack of long-term and detailed planning by state water utility Caerd.

"In late August, council members requested a meeting with city hall to start mapping out privatization plans and to prepare a vote on the matter," the spokesperson said, adding that a specific date for the vote has yet to be set.

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Caerd has made minimal investments during the city's 32-year lifespan and projects have been poorly executed despite available funding under the national growth acceleration program PAC, according to the municipality.

The utility is currently preparing for a contract renewal. However, the issue is now up to the city council, added the spokesperson, who declined to mention the investment amount that would be necessary under a new concession.

With 3.2mn reais (US$2.02mn) in investments during 2009, Rondônia has the second lowest annual sanitation spending in Brazil, according to the cities ministry's 15th water and sanitation diagnostics report, released last week.