09/12/2020

By Leonardo Neri and Fabiana C. Porta

According to the National Information System on Basic Sanitation (Snis), in Brazil, approximately 33 million Brazilians do not have access to treated water, just as 54% of the population does not have access to sewage treatment.

Therefore, in order to mitigate these alarming numbers, Bill 3261/2019, which amended Law 11,445/2007, which determines the national guidelines for basic sanitation, facilitated the privatization of the sanitation service, through bidding.

In this sense, in accordance with article 175 of the Federal Constitution, the provision of basic sanitation public services by an entity that is not part of the administration of the holder depends on the execution of a concession contract, through prior bidding, and its regulation through a program contract, agreement, partnership agreement or other instruments of a precarious nature is prohibited.

The law also provides that private companies that win the bidding process must prove that they have the economic and financial capacity, through their own resources or by taking on debt, to make the universalization of services in the area being bid viable by December 2033, with the deadline being extended to 2040 if the economic and financial unfeasibility of the private company is indicated. By this date, 99% of the population must have access to drinking water and 90% to sewage collection and treatment.

Although there is controversy regarding the benefits of public-private partnerships, the private sector has better technological and financial resources for universal sanitation, in addition to generating jobs and improving people's quality of life.