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Mato Grosso do Sul Explores Wastewater PPP

07 October 2015
Research Note

On 24 September 2015, the state government of Mato Grosso do Sul, Brazil, announced plans to accelerate its wastewater network build-out through a public-private partnership (PPP). The state incumbent water utility, Empresa de Saneamento de Mato Grosso do Sul (Sanesul) seeks to shorten the time to reach universal wastewater coverage from 45 years to 10 years. Sanesul initially estimates an investment of R$1.7 billion(US$428 million), and will launch a tender for expressions of interest—although it has yet to publish a timeline for the plan.

In 2014 Sanesul invested R$52 million (US$13.5 million) into its wastewater network and created an integrated operating platform in preparation for outsourcing O&M. It added 166km to the wastewater collection network, but coverage levels are still low: just 28% (742,000) of the state’s population has a sewerage connection served by the firm’s 44 sewage systems and 33 wastewater treatment plants.

Takeaways

  • Choice between integrated concession model versus segment-specific PPPs key for state incumbent positioning
  • Economic slowdown, budget constraints call for National Sanitation Plan review
  • Brazil increasingly open to foreign entry

Companies Mentioned

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