Just over a year and four months after coming into effect, the new Legal Framework for Basic Sanitation generated 10 times more investments in the sector. The information was given by the minister of Regional Development, Rogério Marinho. He participated in the live weekly alongside President Jair Bolsonaro on Thursday night (25).
According to Marinho, since the new legislation came into force, the average investment in sanitation has gone from around R$3.5 billion to more than R$35 billion. The result was assessed by the minister as extraordinary.
“This is the biggest success that could have been made in modifying this legislation. We had an average of BRL 3 billion to BRL 3.5 billion per year in the BNDES and we went from BRL 35 billion to BRL 37 billion per year in 2020-2021, excluding grant funds”, he said.
The National Bank for Economic and Social Development (BNDES) is the institution that supports state and municipal governments in the preparation of projects for the concession of services.
Currently, in approximately 94% of Brazilian cities, sanitation services are provided by state-owned companies. Private companies administer the service in only 6% of the municipalities.
The new law extinguished the so-called program contracts, those in which mayors and governors signed terms of partnership directly with state-owned companies, without a bidding process. As a result, it became mandatory to open a bidding process, in which public or private service providers could compete.
The aim is for this to unlock business and private services in the sector. The Legal Framework for Sanitation provides for the universalization of water and sewage services by 2033.
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