Brazil to expand public financing for sanitation, housing to US$14.2bn

Brazil’s federal unemployment insurance fund (FGTS) authorized an increase of sanitation and housing financing to 75.1bn reais (US$14.2bn) for 2023, up from 69.1bn reais in 2022.

Of the total, 68.1bn reais will be for housing and 7bn reais for sanitation. Additionally, resources for urban infrastructure will remain the same as this year, 6.3bn reais.

“FGTS resources for basic sanitation have been showing significant growth. In 2021, this amount was around 4bn reais. This year we reached 4.7bn reais and next year we will reach 7bn reais,” regional development executive secretary Helder Melillo said in a statement.

“These sanitation resources are very important for the improvement of services and for the universalization foreseen under the legal framework of the sector. By 2033, the goal is for 99% of Brazilian homes to have water supply and 90% to get sewage treatment and collection,” he added.

FGTS funds are dispersed by state-run bank Caixa Economica Federal and carry lower interest rates than commercial bank loans.

About 465,000 homes are planned to be built next year with the resources.