Law nº 14.026/2020, which updates the legal framework for basic sanitation, provides that Brazilian municipalities have until this Thursday (31) to regularize contracts that do not have universalization goals for water supply and sewage services.
However, a survey carried out by the Almeida Prado & Hoffmann office shows that in the State of São Paulo, of the 370 municipalities where Sabesp operates, only 124 water supply and sewage program contracts, which are those that were not preceded by a bidding process, have their goals adherent to the new legal framework. Therefore, in 246 contracts there is a need to enter into amendments.
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The main objective of the legislation is to universalize and qualify the provision of services in the sector. “The goal is to reach universalization by 2033, ensuring that 99% of the Brazilian population has access to drinking water and 90% to sewage treatment and collection”, explains lawyer Renato Fernandes de Castro, from Almeida Prado & Hoffmann. It is important to highlight that today, in the country, 35 million people do not have access to treated water and more than 100 million do not have sewage collection services.
The expectation is that the new law will also contribute to the revitalization of hydrographic basins, environmental conservation and the reduction of water losses, in addition to providing better quality of life and health to the population, heating the economy and generating jobs.
The lawyer explains that the law aims to standardize the rules and provide greater legal certainty, something that investors around the world are waiting for. According to data from the Ministry of Regional Development, the country needs investments between R$ 500 billion and R$ 700 billion in 10 years to reach the goals.
The expectation is that the universalization of water and sewage services will reduce annual health costs by up to R$ 1.45 billion, according to data from the National Confederation of Industry (CNI). In addition, for every BRL 1 invested in sanitation, savings of BRL 4 should be generated with the prevention of diseases caused by the lack of service, according to the World Health Organization (WHO).
“Basic sanitation is related to the population’s own health and quality of life, which is why investments in this area are so important”, highlights the lawyer, remembering that many states are already thinking about privatizing the service to private companies or carrying out an IPO (initial public offering) of its shares on the Stock Exchange, as recently announced by the government of Rio Grande do Sul. Rio de Janeiro and Alagoas have taken the lead and have already granted basic sanitation services to the private sector.
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