2020 Legal Sanitation Framework: modernization and investments

The 2020 Legal Sanitation Framework modernized the national regulatory environment. This attracted significant private investment by promoting stability, enabling new financing alternatives and mechanisms to universalize basic sanitation services in the country by 2033.

The plan is to ensure that 99% of the population have access to water supply and 90% to sewage collection and treatment by that date. To achieve this objective, investments estimated from R$500 billion to R$700 billion are required.

Cities seek to adhere to the regional model of basic sanitation services, with the establishment of favorable economy of scale charges; thus the universalization of sanitation services can take place in cities that  would not otherwise be able to reach the goals by themselves.

The Framework also allows for concession auctions of public sanitation services. Ten such biddings have already been held in involving 220 cities -  a total affected population of around 20 million people. Over R$ 47.3 bil. will be invested by concessionaires in up to 30 years.

Here is a good example of the new legislation: since Nov. 1st 2021, a concessionaire has taken over the basic sanitation of 27 cities in Rio de Janeiro, restoring and improving the capacity of existing systems. This made it possible to clean the water that reaches Guanabara Bay.