Basic sanitation is the sector that has attracted the most interest from foreign investors seeking information from the government on infrastructure, revealed Gabriel Fiuza, Secretary of Infrastructure Development at the Ministry of Economy, during an online event held last week.
“Ninety percent of the questions are about sanitation, and about 8% are about the electricity sector. That is the main concern. And now we have to do our homework,” he said, referring to the regulations under Law No. 14,026/20, which established the sector’s regulatory framework.
According to Fiuza, the new sanitation framework is “far from a won battle,” due to the lengthy and complex process of regulating the law. In his view, it is crucial that the decree on the economic and financial evaluation of companies be published—a step the government promised to take last year but postponed due to disagreements between the Ministries of Economy and Regional Development. The decree will define the extent to which the sanitation market will be opened up to private companies, depending on the criteria companies must meet to expand their operations into new areas.
The secretary requested input on the development of sector-specific reference standards, a task that has been the responsibility of the National Water and Basic Sanitation Agency (ANA) since the regulatory framework was established. Under the proposal, the federal regulatory agency will be required to issue regulations that state and municipal agencies must follow, thereby enabling local governments to receive federal funds.
Authorized Water Abstraction
The Ministry of Regional Development has authorized the Ceará Water and Sewerage Company (Cagece) to raise up to R$516 million for projects aimed at expanding the supply of drinking water and improving sewage collection and treatment. The funds may also be used to reduce water losses in the water supply systems.
Ongoing projects will benefit approximately 2.5 million people in 20 municipalities across the state. The total investment could reach R$578 million, including investments and financing provided by the company itself.
The funds authorized by the ministry may be raised in the market through the issuance of incentive debentures (private fixed-income securities that allow companies to raise capital from investors to finance their projects). The funds raised must be used for infrastructure projects, with investors eligible for an exemption or reduction in income tax on the profits they earn.
Source: O Brasilianista.
