Privatization of Sanitation and Water Distribution in Brazil

Abstract

In the near future, Brazil will offer an opportunity for private investors to construct and operate sanitation and water distribution systems. Given the diversity of the country, federal, state, and municipal governments have concluded that there is not one single ideal model for the entry of private investors; it will probably vary according to the local needs and the available infrastructure. This article provides investors a summary of the history of sanitation in the country, the existing legal, regulatory, and financial concerns regarding the provision of water and sewage services, as well as the potential of the market for development supported by private investment. Additionally, it analyzes the alternatives and models adopted worldwide to allow the entry of private participants, indicating their respective advantages and disadvantages vis-à-vis the current scenario in Brazil.