New basic sanitation rules should benefit more than 29 million Brazilians

The changes will allow investments of R$ 120 billion reais until 2033 and among them is the end of the 25% limit for the realization of Public-Private Partnerships (PPP) by the states. With this, the aim is to increase the participation of the private sector and attract new investments to the sector.

The adjustments brought about by the new decrees will allow 1,113 municipalities to once again access basic sanitation resources from the federal government so that they can meet the universalization target. Under current rules, these 1,113 municipalities, which have 29.8 million inhabitants, had their contracts with state providers declared irregular and, therefore, could not count on federal funds to seek universalization.

During the signing ceremony, Geraldo Alckmin, vice-president of Brazil, explained that the decrees signed by the president contribute to an improvement in the health of the Brazilian population.

“These two decrees strengthen the federation, establish a synergy between municipalities, states and the union and stimulate investment. Basic sanitation is health”, he points out.

According to the government, the proposed new methodology allows providers responsible for sanitation services in 351 municipalities to prove their economic and financial capacity and thus avoid interruption of investments. It also allows the provision of services in another 762 municipalities, which had been excluded by the previous methodology, to be included in the verification process and thus regularized, to avoid suspension of services or investments.

Another important adjustment was the regionalized provision, since the Law requires that, in order to have access to federal funds, services must be provided in a regionalized manner, serving more than one municipality and with the new rules, the deadline for regionalization is until the December 31, 2025.

The new deadline guarantees the states the necessary time to properly structure the regionalized offer in the territories, as provided for in the new legal framework, without compromising investments in the transition period to the new provision model.

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