Brazil's sanitation plan is off track - Abcon

By
Wednesday, October 8, 2014

Brazil's Plansab sanitation initiative is not moving forward as expected, said water and sewerage concessionaires association (Abcon) head Paulo Roberto de Oliveira.

"While Brazil's average annual investment in potable water supply and sewage collection and treatment works over the past 10 years has been 7.06bn reais, Plansab calls for 304bn reais in waterworks investments to reach universal coverage by 2033," de Oliveira told BNamericas.

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This is equivalent to 15.2bn reais per year, or more than double current investments. Only about 7.6bn reais is foreseen to be invested yearly in 2014-17. At this rate, universal service would not be achieved until 2055, the executive said.

Overall, Plansab calls for some 508bn reias in investments in 2014-33. This amount involves solid waste management projects, as well as potable water supply and sewerage works.

PRIVATE SECTOR

Through public-private partnerships and direct concessions, the private sector is expected to contribute 1.3bn reais of the 7.6bn reais in annual investments in 2014-17, or 18% of the total, according to de Oliveira.

Private sector investments outpace public investments by more than three to one. Currently, private companies manage water and sanitation concessions in 300 municipalities, some 5% of Brazil's total.