PT and Psol ask for annulment of the São Paulo government decree that regionalizes water and sewage services in the State
The minister of the STF (Supreme Federal Court) André Mendonça denied the request for an injunction proposed by PT and Psol in an action against the privatization of Sabesp (Companhia de Saneamento Básico do Estado de São Paulo). Here's the complete of the decision (PDF – 246 kB).
In the request, the parties asked for the annulment of the decree of the São Paulo government Tarcísio de Freitas (Republicans) to regionalize water and sewage services in the State. The measure is one of the first steps towards the privatization of the company. For Mendonça, the regulation follows the new Sanitation Legal Framework.
The decision can still be reversed if it is submitted to the plenary analysis of the STF (Supreme Federal Court).
Regionalization transfers the management of water and sewage services to a type of council, called Uraes (Regional Units for Drinking Water Supply and Sanitary Sewage Services), which brings together representatives from the State and municipalities.
With the unification of command, the state-owned company attracts more interest from private companies. Due to concessions, the largest cities in São Paulo have clauses that establish the cancellation of contracts in the event of privatization. Therefore, the measure is seen as the 1st step towards privatization.
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