Industry Overview

WATER SUPPLY

Published annually by the Ministry of Cities, the 2011 edition of the Water and Sewer Services Diagnosis shows that the country has high levels of water system services in urban areas.
The national average in this item is 93%.

However, data published in Atlas Brasil 2010 by the ANA – National Water Agency show that of the 5,565 Brazilian municipalities, 45% have satisfactory supply, which is equal to 52 million inhabitants that will have a guaranteed urban water supply up to 2015.

The other 55% of the municipalities may have supply deficits starting in 2015, as a result of water supply problems in relation to quality and/or quantity. For these municipalities, there is an urgent need for substantial investments in production systems, involving capture, conveyance, treatment and use of new watersheds.
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SEWAGE COLLECTION AND TREATMENT

A service with a large deficit, sewage collection systems reaching the urban population have an average far below desired (55.5%), while the national average for treatment of sewage generated is 37.5%.
In population terms, these rates account for approximately:

  • 34 million Brazilians without access to the general supply system;
  • 63 million Brazilians at risk of running out of supply starting in 2015;
  • 85 million Brazilians that do not have adequate access to sewage collection services;
  • 118 million Brazilians without home sewage treatment.

This situation is considered to be precarious when compared to countries in Latin America and is a reflection of insufficient funding in the sector.

Investimento - Prazo para Universalização

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Published in December 2013, PLANSAB (National Basic Sanitation Plan) establishes targets and financial resources of around BRL 304 billion, or rather, approximately BRL 15.2 billion per year, by 2033, so that the country can achieve universalization of water and sewer services.

Considering the last 10 years, the investments made in supplying water and sewage services in the country reached an average of BRL 7.6 billion per year, the conclusion can be reached that, if the current level of investments remains steady, universalization will be achieved in approximately 40 years, two times longer than the target established in the PLANSAB.

Added to the challenge of universalization is the urgent need for improvements to the efficiency of services, translated into an average rate of water loss in the country near 40%.

The strategies proposed for development in the industry combine structural measures, which correspond to the traditional investments in construction projects and physical interventions, and structuring measures, understood as those that provide technical and managerial support for sustainability in providing services.

In this context, the private sector is found to be a strategic partner and part of the solution, posited as a real alternative for the country to advance towards universal access to water and sewage services.

Private companies have been working in the Brazilian sanitation sector since 1995; today, the segment has matured, with good examples of management and operation of water supply and sewer systems, characterized by efficient, innovative, and sustainable projects.

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We are found in 269 municipalities, with different partnership and cooperation models with the public sector, such as: full concessions, partial concessions, public-private partnership, asset rental, management contracts, and others.
The population benefitting from these models is around 25 million people.

This participation has committed investments of around BRL 23 billion in these municipalities, BRL 5.5 billion of which were made up to December 2012, when operations were at their highest point, with a total of BRL 959 million invested.

With current operations, BRL 6.5 billion is expected to be invested by 2017.