PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

SANITATION CANNOT WAIT

Panorama of the private sector's participation in sanitation 2019

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04 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

of the private sector’s participation in sanitation 2019

05 06 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 PRESENTATION ///////////////////////////////

ON FEBRUARY 1ST, when starting the Legislative Branch works with numerous new parliamentarians, the National Congress received a message from the President of the Republic, in which the Executive Branch proposes reforms and lists relevant topics which, from reforms in legislation, can provide opportunities for economic and social progress for the Brazilian society. Among the priorities listed by the Government was, for the first time, sanitation. It was SANTIAGO CRESPO a victory for all those who, like ABCON and SINDCON, have advocated the enhancement President of ABCON of sanitation as a public policy. However, there is certainly a long way to go from the public recognition to investments that could provide decent sanitary conditions to the Brazilian society, including legal and regulatory issues. Before the large sanitation deficit and the inequalities of this situation, the partnership with the private sector becomes increasingly necessary – and recognized as such. Therefore, this edition of the Panorama of the Private Sector’s Participation in San­ itation 2019 differs from the previous editions. More than pointing out the assessment of the private operations achievements, we have decided to show, in each Political Subdi­ ALEXANDRE FERREIRA LOPES vision, the real situation of sanitation, the coverage levels of services and the economic President of SINDCON and financial situation of the operators, in a retrospective of the last five years. The expansion of the private enterprise is moving slowly. Today, private companies are present in 325 municipalities, many of which are achieving the universalization of water supply and sewage collection and treatment services. How these cities of all sizes have been able to achieve that universalization, despite the fiscal crisis affecting the public coffers in recent years? How do the governing author­ ities of these municipalities have succeeded in providing essential services which prevent disease and impact positively on the economic and social development of their cities? How did they finally bring dignity to the population? The political will and the courage to perform public-private partnership are at the heart of many of these cases, as we demonstrate in this Panorama.

Good reading!

07 08 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

SANITATION IMPACT IN THE LIVES OF 01 BRAZILIANS

WINDOW OF 02 OPPORTUNITY ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS

03 LEVEL OF SERVICES COVERAGE

HIGHLIGHTS OF THE PRIVATE ENTERPRISE

PRIVATE CONCESSIONS 04 FRAMEWORK

09 10 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

01 SANITATION IMPACT IN THE LIVES OF BRAZILIANS

11 INVESTING IN SANITATION: COMMITMENT WITH THE FUTURE OF BRAZIL /////

Among so many priorities, there is an urgency that lasts for years CHALLENGE OF UNIVERSALIZATION - in Brazil: the need for more investment in sanitation. Invest­ SEWAGE COLLECTION AND TREATMENT (%) ments were never up to the demands of a Brazil in need of health, Source: SNIS 2007-2017 (IN015 - Sewage collection rate and IN046 social welfare and environment care. Actually, what we invest in - Treated sewage rate referring to consumed water) sanitation is not even close to enough.

We’re about 30 years too late. The country has not improved the 100% 100% 100% coverage of sewage collection and treatment offered to the pop ulation as demonstrated in this chapter through the SNIS (National Sanitation Information System) figures about sanitation and the targets of PLANSAB (National Sanitation Plan) released in 2013 with the objective of universalizing services in 2033.

In 2017, as shown in the next chart, the total water consumed in Brazil was 9.9 billion m³, and, of this total only 4.4 billion m³ were treated. A total of 1.2 billion m³ of sewage were disposed, but not treated before released in water bodies, and there is still 4.25 bil­ lion m³ of sewage not collected.

58% 54.2% 49.6%

46% VOLUME OF CONSUMED WATER 38.7% VOLUME OF COLLECTED SEWAGE 32.5% VOLUME OF COLLECTED AND TREATED SEWAGE

In 2017, the total volume of water consumed in Brazil was of 9.9 billion m³. Only 46% or 4.17 billion m³ of sewage were treated.

There’s still 41.9% or 4.15 billion 2007 2012 2017 m³ of sewage not even collected.

12 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

NETWORK EXTENSION Water distribution and sewage collection x PLANSAB Target (km x 1000)

2033 – PLANSAB's Target WATER Projection for 2033 838,000 km of network km x 1000 2033 – PLANSAB's Target WATER Projection for 2033 838,000 km of network km x 1000 641 162 35 641 162 35 SEWAGE Projection for 2033 2033 – PLANSAB's Target km x 1000 605,000 km of network SEWAGE Projection for 2033 2033 – PLANSAB's Target km x 1000 605,000 km of network 313 162 130 313 162 130 PLANSAB's Target - 2033: PLANSAB's Target - 2033: Existing network Network extention constructed Network extention not constructed distribution in 2016 if the current rate is maintained if the current rate is maintained Existing network Network extention constructed Network extention not constructed distribution in 2016 if the current rate is maintained if the current rate is maintained

POPULATION ASSISTED 2033 – PLANSAB's Target Projection for 2033 by sewageWATER and water services x PLANSAB Target (millions of inhabitants) 223.1 million 2033people – PLANSAB's assisted Target WATER Projection for 2033 223.1 million people assisted 167.7 45.9 9.4

167.7 45.9 9.4 2033 – PLANSAB's Target SEWAGE Projection for 2033 207.3 million 2033people – PLANSAB'sassisted Target SEWAGE Projection for 2033 207.3 million people assisted 195.2 57.6 44.5 195.2 57.6 44.5 PLANSAB's Target – 2033:

PLANSAB's Target – 2033: Population Population included if the current Population NOT included if the current assisted in 2016 coverage increase rate is maintained coverage increase rate is maintained Population Population included if the current Population NOT included if the current assisted in 2016 coverage increase rate is maintained coverage increase rate is maintained

Source: SNIS 2017. Linear projection based on the increase of the assisted population between 2004 and 2017. . Population to be assisted in 2033, ABCON calculation based on the projection of the total population according to IBGE.

13 To meet the target, it would be necessary to invest R$20 billion Without sanitation, a considerable part of the Brazilian people – per year. This level was never reached. In 2016, for example, R$11.33 most of them low income people facing other difficulties in access billion was invested in sanitation, that is 0.18% of the national GDP. to public health and education – are subject to water-borne In 2017, investment fell to R$10.05 billion. (PLANSAB investment epidemic diseases and complications arising from poorly treated target to the sanitation sector is 0.33% of the GDP). water and lack of sewage treatment.

Continuing at this rate, roughly half of the population - 100 In Brazil, 14.3% of children and teenagers do not have access million people – will remain suffering without rights that should to treated water, which is a fundamental right. Of these, be guaranteed to every citizen. 7.5% have water at home, but not filtered or from reliable source, being in intermediate deprivation; and 6.8% are not assisted with water system in their homes, being in extreme In urban regions, 12 million Brazilians deprivation. Water deprivation varies according to region, are still not supplied with treated water. being prevalent in the North, Northeast and in the rural area (UNICEF, 2018).

To understand the extent of the challenge: an effective plan would have to build 200,000 kilometers of water distribution network. Over the next 15 years, 255,000 Brazilians could As for the sewage collection network, it would be more than die from waterborne diseases, caused by lack of 300,000 kilometers. proper sanitation.

Brazil can no longer be exposed to international shame. When we compare the international information base, 105 countries are Before these figures, it is critical that the country overcomes all ahead of Brazil in terms of sanitation access. Our performance is deadlocks in political, legal and economic fields that prevent the lower than that of our neighbors in South America. (See chart below). sanitation development.

COUNTRY WATER ACCESS SEWAGE SERVICE

BRAZIL 83.3% 51.9 JORDAN 96.9% 98.6 IRAQ 88.6% 86.5 MAROCCO 85.4% 76.7 SOUTH AFRICA 93.2% 66.4 CHINA 95.5% 76.5 BOLIVIA 90.0% 50.3 CHILE 99.0% 99.1 MEXICO 96.1% 85.2 PERU 86.7% 76.2

14 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Sanitation is health

RECENT RESEARCH of IBGE (2018) reveals that 1,933 municipali­ (26.9% of the total) reported the occurrence of endemics or epi­ ties (34.7% of the total) recorded occurrence of epidemic or en­ demics of Dengue fever. Dengue fever, as well as Zika and Chikun­ demic diseases caused by lack of sanitation in 2017, considering gunya, are transmitted by the bite of the Aedes Aegypti mosquito, endemic diseases those which exist, constantly, at any given place, which breeds in stagnant water. Such diseases are therefore independent of the number of individuals attacked by it. strongly linked to sanitation services.

According to IBGE, the most common disease cited by Munici­ Other diseases with high incidence, caused by lack of sanitation, pal governments was Dengue fever. In 2017, 1,501 municipalities were dysentery (23.1%) and verminosis (17.2%).

1,933 Brazilian municipalities, 34.7% of the total, had epidemics or endemics in 2017

6.9% of municipalities reported occurrence of dengue fever 23.1% dysentery, 17.2% verminosis

Source: IBGE

15 Example of Health cost economic savings

THE IMPACT of waterborne diseases is directly linked to the THE RELATIONSHIP between sanitation and country’s economy. health is also evidenced in a concrete example, Uruguaiana/RS which occurred in the city of Uruguaiana, on According to IBGE, in 2013, the country had 14.9 million cases of the west border of Rio Grande do Sul State. sick leave because of dysentery or vomiting (whereas the same person may have left its activities for more than one occasion over Since the beginning of its operations, seven years ago, the the course of a year). private concessionaire BRK Ambiental has already invested around R$145 million, expanding the sewage assistance from 9% to 94%. The official data show that, on average, in each sick leave cycle, people were away from their activities by 3.3 days. The impact of these investments can be seen in health. In 2012, 3,002 occurrences of acute diarrhea were registered in the city. The economy with the improvement of the Brazilians health With the development of sanitation over the seven years in planned for the period 2016 to 2036 – based on sick leaves and Uruguaiana, in 2018, 106 cases were registered, that is 28 times hospitalizations occurred in 2016 – should be about R$297 million. less than in 2012.

In 20 years (2016 to 2036), whereas the gradual improvement of sanitation, the present value of the economy with public health Historical data: 28 times less acute diarrhea in 6 – either by sick leave or the cost of hospitalization in the SUS years. Never before occurred such an important (Brazilian National Health System) – must reach R$5.9 billion. reduction in rates of diseases caused by water– borne organisms in the municipality of Uruguaiana.

Another example that demonstrates the need for 391 mil R$ 125,5 investment and management in sanitation hospitalizations million can be seen in the capital of Mato Grosso do Campo Grande/MS Sul State, Campo Grande. The concessionaire Águas Guariroba has already invested approx­ imately R$1 billion between 2005 and 2017 to expand and improve the water and sewage services.

This investment was directed to programs aiming at the univer­ salization of sewage services to every neighborhood of the city.

Executed in stages, the programs have reduced the hospitalization Considering hospital admission for gastrointestinal infectious diseases, we had 391,000 rate for diarrheal diseases from 157.3 for each 100,000 inhabitants in hospitalizations in 2013. The SUS spent R$125.5 million with these hospitalizations. 2003 to 13.7 for each 100,000 inhabitants in 2015 – a 91% reduction.

16 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Economic and social benefits

THE STUDY “Economic and Social Benefits of the Sanitation Ex- its various areas would reach R$1.12 trillion. This means that the pansion in Brazil, 2018”, conducted by the Trata Brasil Institute universalization of sanitation would bring significant gains for the in partnership with ABCON and Exante consultancy, shows that, Brazilian society, much higher than the costs of universalization. whereas the national average cost to bring water and sanitation This value is the balance between direct benefits and gains from to houses, the expansion of water and sanitation services in the the reduction of poor sanitation externalities about R$1.52 trillion country can bring more than just better health conditions. in one hand, and the costs of universalization in the other hand.

In two decades, discounting the costs of universalization, the The table below presents the costs and benefits of the sanitation economic and social gains brought by the expansion of services in expansion in Brazil between 2016 and 2036:

COSTS AND BENEFITS OF THE SANITATION EXPANSION IN BRAZIL 2016 TO 2036

in R$ Billion Costs and benefits per year 2016-2036 Reduction of health costs 0.297 5.949 Increase in labor productivity 9.519 190.374 Income from real estate appreciation 22.373 447.457 Income from tourism 2.143 42.860 Subtotal externalities (A) 34.332 686.641 Income generated by investments 15.097 301.933 Income generated by the operation increase 24.496 489.920 Taxes linked to production** 2.141 42.825 Income subtotal (B) 41.734 834.679 Total of benefits (C=A+B) 76.066 1,521.319 Investment Cost -12.063 -241,269 Household Expenditure -7.716 -154.314 Expenditures (D) -19.779 -395.582 Balance(E=C+D) 56.287 1,125.737

17 Sanitation and These total earnings are significant, failing to provide more income for tourism workers, higher profits for businesses and real estate valuation higher taxes for governments, especially for municipalities that receive taxes on services and tourism activities. THE STUDY of Trata Brasil Institute took as a basis the IBGE 2017 data to reveal a significant impact of sanitation under the value A practical example of a tourist center destruction happened of real estate assets and the income generated by the sector. in Lagoa de Araruama, in the Região dos Lagos District in Considering two properties in similar neighborhoods that differ Rio de Janeiro, which suffered for years with only by access to sanitation, the one that is connected to water environmental impacts caused by distribution and sewage collection networks could increase the the lack of sanitation. The actions value by 16.4%. of two private concessionaires in the municipalities surrounding the Pond were Região dos Lagos, RJ With access to treated water, the value difference is about 9.0%. instrumental for this postcard of Rio de Janeiro The absence of toilet could reduce the value by 7.4%. This data to be recovered. indicate that the adequacy of sanitation with water distribution and sewage collection networks would increase the value of the In 1998 the company Aegea Saneamento, through its concessionaire property in almost 33% (which corresponds to the accumulation Prolagos, took over the concession of water supply and sewage of the three effects). collection and treatment services in five municipalities in the region and has already invested more than R$1.5 billion.

Sanitation and tourism In addition, another private concessionaire, the Águas de Juturnaíba, of the Águas do Brasil Group, which operates in the THE TOURISM sector is no different. The tourism industry is an cities of Araruama, Saquarema and Silva Jardim, has contributed economic activity that fails to develop properly in regions with­ to the cleaning up of the Pond, investing R$192 million and reaching out treated water, sewage collection and treatment. Environmen­ a water coverage rate of 98.6% and sewage collection and treat­ tal contamination by sewage compromises, or even negates, the ment rate of 72.6% in the region where it operates the services. tourism potential of a region. The proliferation of algae in some coves scared the population, Comparing Brazil with neighboring countries, those Latin Ameri­ giving clear signs that the natural purifying capacity of the Pond can economies with better sanitation have international tourism was running out. With the performance of these two companies, flows relatively larger. Cuba, Chile and Argentina have reached over 70 million liters of sewage in natura that were released 261, 207 and 138 foreign tourists per thousand inhabitants in directly into the Pond began to be collected and transported into 2014. In Brazil, that number was only 31 tourists per thousand modern treatment plants built by the concessionaires. inhabitants. And this was the year when the country hosted the soccer World Cup. Who does not remember the obvious pollution The ecosystem of the lagoon was recovered and the Araruama of Guanabara Bay? Lagoon now has fish and crystal clear water. Fishing activity returned to normal as well as the practice of nautical sports, promoting the economy of the region. CBased on statistical model, it is estimated that the tourism income in Brazil due to the universalization of sanitation reach R$2.1 billion Nowadays, the tourism has returned to the per year over the period 2016 to 2036, and reach region and the many subsistence fishermen can R$42.8 billion in total. enjoy this ecosystem again.

18 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

Região dos Lagos, RJ 02 WINDOW OF ABCON/SINDCON has as main purpose to support the society OPPORTUNITY and the public authorities to ensure the access to decent and efficient water supply and sanitation services for all Brazilian citizens

19 OPPORTUNITY TO DEVELOP SANITATION /////////////////////////////////

IN 2015, an audit report of the Federal Audit Court (TCU) was And, especially, a relevant correlation was not emphatic: the situation of sanitation in the country is identified between the volume of investments incompatible with the development level and national wealth. 3 of the Ministry of Cities in sewage system construction works with resources of the Federal Government Budget (OGU), and the municipal TCU’S REPORT ALSO CONFIRM THAT: levels of child mortality, coverage of sewage collection network, human development and water availability of the cities which were part of the The release of sewage in natura is the main cause of clientele of the Ministry. 1 pollution in water bodies, especially in the cities.

Since this audit came out, by means of the report TC 017.507/2015– 4, little has changed. As already demonstrated in this Panorama, Brazil urgently needs at least double the investment in sanita­ The Sewage Atlas of the National Agency of tion to universalize water and sewage services and provide better Water, ANA, reports that more than 110,000 health, housing, education and income conditions as well as other kilometers of rivers are polluted by having direct social indicators. The effort to increase the budget is huge and the contact with sewage (ANA, 2017). public sphere will not achieve this alone.

It is a challenge of historic proportions, which, The deficiency of these services leads to undesirable while not being faced, will produce negative and situations and affect the well-being and health of permanent effects for generations to come. 2 the population, as well as the environment.

20 PANORAMA DA INICIATIVA PRIVADA NO SANEAMENTO 2019 A NEW LEGAL FRAMEWORK////////////////////////////////

THE LEGAL FRAMEWORK of sanitation has been the subject of dis­ EFFECTIVENESS OF INVESTMENT: cussions in the National Congress since mid-2018, when the Execu­ In 2016, the financial water distribution losses tive Branch, through the then President Michel Temer, forwarded 3 accounted for about R$10.5 billion, while the to the Legislative Branch a proposal as a Provisional Measure to sanitation sector had invested R$11.5 billion update and modernize the guidelines governing the sector. in the same year.

The reformulation of the sanitation legal framework is necessary to ensure the legal certainty which attracts investors and creates new opportunities for private investment, in addition to promoting Brazil lost 92% of the amount invested by the regulatory consistency and efficiency in the provision of services. sanitation sector in the same year. The expectations with the modernization of the sanitation legal framework are:

INCREASE THE INVESTMENT CAPACITY in the whole sector from the improvement of the regulatory THE REGULATION OF THE SECTOR, 1 environment with greater competitive equality, from national parameters for the quality of seeking greater opportunities and greater security 4 services. In Brazil, until the end of 2017, there for investors interested in the sector. The current were 49 sanitation regulatory agencies, being 22 estimated needs of PLANSAB/MCidades are of 0.4% State agencies, 23 Municipal agencies and three of GDP per year, excluding water security actions. Municipal Consortiums.

The investments made in recent years were of 0.21% of GDP, i.e.: half the necessary investment These agencies regulate about 2,906 munici- (World Bank, 2018). palities, in other words, 52.2% of Brazilian cities, according to the Brazilian Association of Regula- tory Agencies (ABAR) (2018). THE STIMULUS TO THE EXPANSION OF INVESTMENT, to foster the competitive environment and business in the sector. There is a significant difference between 2 the quality of water and sewage services provided by CLEAR RULES OF PLANNED private companies and State companies, considering investments for contracts, and targets that municipalities with private providers are, on 5 to the expansion of services. average, 10% better evaluated.

This means that the private sector had positive STRENGTHENING THE OWNERSHIP impact on the improvement of sanitation 6 of municipalities or consortium of municipalities services provided to municipalities (2017). to decide on more efficient sanitation concessions.

21 SANITATION CANNOT WAIT! ///////////////////////////////

THE CHOICE of partnership with the private sector – held success­ INVESTMENTS OF PRIVATE SECTOR IN SANITATION (R$) fully in 325 Municipalities in the country – becomes even more es­ Source: SPRIS 2018 sential for Brazil to obtain necessary resources – not only financial resources, but also planning, technology and management – for the expansion of sanitation. 21.8 billion by the end of the contracts

In the last 20 years, the private concessionaires invested R$15.2 billion in the sanitation sector, despite more R$21.8 billion committed to 37 BILLION 2018 2017 existing contracts. COMMITTED to contracts with the private sector signed between 1994 and 2018

15.2 billion The values are quite representative, especially when we know that invested the private sector is present in only 6% of Brazilian municipalities. Even though limited to such participation, the private sector pump into the sanitation sector around 20% of the total amount invested. 1994 PRIVATE MUNICIPALITIES X PRIVATE INVESTMENT Source: SPRIS 2018 5,570 R$11 billion Municipalities invested in the in Brazil sanitation sector in 2016

PRIVATE 6% ENTERPRISE 20%

22 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

EFFECTIVENESS THE TARIFF ISSUE OF INVESTMENTS

RESEARCH CONDUCTED by prominent institutes have concluded ANALYZING THE EFFECTIVENESS of investments by private that, for the population, no matter who provides the service. The and public concessionaires, it is important to highlight the important thing is to have access to a quality service at a fair price. comparisons by region, population size and whether the cities have similar profile (capitals, for example). However, the sustainability of services must ensure that all necessary advances to the population are actually implemented, Next, we bring some of these comparisons, according to facts including the correct management of the systems. that allow a prospect of development – or not – of the chosen municipalities . In this sense, a recent survey of Sindcon assessed the financial balance of sanitation companies from a tariff perspective in order to demonstrate if the BILLING VALUE per cubic meter of water supply and sewage system has supported the EXPENDITURE value SANTA GERTRUDES X CORDEIRÓPOLIS, per cubic meter in the provision of services. SMALL MUNICIPALITIES IN THE INSIDE OF SÃO PAULO.

Tariff indicators reveal that, in general, State and Municipal en­ Santa Gertrudes and Cordeirópolis are neighboring cities in the terprises lack of balance between revenues and expenditures, inside of São Paulo, both with an estimated population of about while private companies have a good financial balance between 25,000 inhabitants. Separated by just nine kilometers way, but the billing value and the cost of services per cubic meter of water by an abyss in relation to sewage treatment rates. While in supply and sewage system, as shown in the table below, based on Santa Gertrudes, assisted by a private company since 2010, the the Diagnosis of SNIS, Base Year 2017: sewage treatment rate is 100%, in Cordeirópolis it is 0%.

The concession contract was signed in 2010 and so far R$11 FINANCIAL BALANCE OF million have been invested, enabling 100% of sewage treatment OPERATORS FROM A TARIFF PERSPECTIVE in the municipality. Regarding the water supply system, the Source: SNIS 2019 - Base Year 2017 Elaboration: SINDCON company has reduced the loss rate from 50% to 21%, in addition Relative value of total to eliminating the lack of water. Relative billing value expenditure per cubic per cubic meter (R$) meter (R$) In Cordeirópolis, the company responsible for sanitation is the CONSAB – Intermunicipal Consortium of Environmental STATE 3.86 4.44 Sanitation, which also assists the municipalities Artur Nogueira, COMPANIES Conchal, Cosmópolis, Engenheiro Coelho, Jaguariúna and Santo PRIVATE Antônio de Posse. 3.40 3.29 COMPANIES For comparison purposes between the cities, the data of the SNIS MUNICIPAL 1.89 2.04 2016 and the Brazilian Institute of Geography and Statistics will SERVICES be considered, as follows: BRAZIL 3.05 3.25 AVERAGE

POPULATION SEWAGE ANNUAL Note: this comparison does not reflect the average rate calculation formula per cubic (IBGE 2017) TREATMENT INVESTMENTS meter used on SNIS. It represents the statistical treatment result, i.e. the arithmetic av- (SNIS 2016) (SNIS 2016) erage of the billing values per cubic meter compared with the average of the spent val- ues per cubic meter in the provision of services. In the next chapter of this edition, these Santa Gertrudes 25.637 99.72% R$ 822,829.00 indicators will be analyzed with greater detail in every Brazilian State. Cordeirópolis 23.793 0% R$ 41,823.32

23 PALMAS (TO) X PORTO VELHO (RO), capitals of the northern region.

Palmas and Porto Velho are located in the northern region. In 1998, the State of Tocantins sought a partnership with the (RR) R$31,245,566.68; Macapá (AP) R$8,341.96; Porto Velho (RO) private sector, making the Saneatins the only State company R$0.00; Rio Branco (AC)-R$202.80 [The data may have been en­ under private management. In 2012, the concessionaire BRK tered incorrectly in the SNIS]. Ambiental took over the control of Saneatins. Today, the city offers 100% of sewage collection and treatment, the highest Palmas is also ahead of other capitals in water treatment invest­ rate in the northern region. This is a reflection of investments ment. While BRK Ambiental has invested R$71,758,622.84 in the made by the company in the city. municipality, the other companies have had poor performance: Macapá (AP) R$2,900,271.53; Boa Vista (RR) R$17,050,542.89; Porto On the other hand, Porto Velho has its services controlled by Velho (RO) R$1,762,950.53; and Rio Branco (AC) R$2,167,881.18. the Water and Sewage Company of Rondônia, a mixed-economy society with public management. In 2018, the city was in last place Assistance rate - WATER in the ranking drawn up by the Trata Brasil Institute, considering Palmas, in comparison with the other four capitals, is the only one the 100 largest cities in the country. with all residences equipped with water meters. That means the control of water use and supply service as a whole is much better For comparison purposes between the cities, the data of the SNIS (Macapá (AP) 29.17%; Boa Vista (RR) 68.28%; Porto Velho (RO) 2016 and the Brazilian Institute of Geography and Statistics will 82.67% and Rio Branco (AC) 63.31%). be considered, as follows: The water service in Palmas is one of the two best among the five POPULATION SEWAGE ANNUAL CHILD MORTALITY capitals (Boa Vista (RR) 100%; Palmas (TO) 99.90%; Macapá (AP) (Inhabitants TREATMENT INVESTMENTS mortality (deaths per thou- 39.44%; Porto Velho (RO) 36.25% and Rio Branco (AC) 59.50%). IBGE 2017) (SNIS 2016) (SNIS 2016) sand births IBGE 2016) The loss rate of Palmas is also the best one: Palmas (TO) 38.62%; Palmas 286,787 100% R$ 23,317,263.39 9.48 Rio Branco (AC) 58.19%; Macapá (AP) 66.25%; Boa Vista (RR) Porto Velho 519,436 12.18% R$ 41,823.32 13.36 65.99% and Porto Velho (RO) 70.88%.

The comparison between Palmas and other capitals in the North Assistance rate - SEWAGE of the country also shows large differences. Comparing the period from 2010 to 2016, only Palmas (TO), had 100% of sewage collection and treatment: Boa Vista (RR) 97.76% Investment (2010 – 2016) (average 2010 – 2016); Macapá (PA) 96.81% (average 2010 – 2016); Palmas was the capital which invested most in sanitation. The Porto Velho (RO) 1.74% (average 2010-2016 * Treatment = 0 be­ Capital of Tocantins has invested R$183,181,827.00. Boa Vista tween 2010 and 2015, only 12.18% in 2016); Rio Branco (AC) 97.14%.

SANITATION CANNOT WAIT!

24 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

03 ECONOMIC The fiscal crisis has deepened the serious financial situation of States that AND FINANCIAL do not have resources to invest in priority areas. Once the States, through State sanitation companies, assist more than 70% of municipalities in SITUATION OF THE OPERATORS Brazil, the sector’s situation becomes even more precarious.

LEVEL OF SERVICES COVERAGE The information provided by indicators of water supply and sewage collection and treatment in the States demonstrate an unequal Brazil, HIGHLIGHTS OF which is far from achieving the targets of services universalization.

THE PRIVATE ENTERPRISE Next, we present these data in each of the States, as well as a brief analysis of the consequences of lack of investment, management and

Sources: innovation in sanitation. SNIS – National Sanitation Information System SPRIS – Private Sector Information System of Sanitation The survey brings successful investment experiences with the private

Note: sector participation showing that sanitation is no longer an obstacle The cases reported in this to health and development in some municipalities that have chosen chapter present indicators updated in 2019 to partner with private companies.

25 ALAGOAS

SERVICES COVERAGE LEVEL POPULATION: : 3.322.820* | MUNICIPALITIES: 102 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: 100 96.3 • BY STATE COMPANY : 76 93.6 94.9 95.2 89.9 90.1 90.5 90.3 89.9 SS: 12 S: 64 88.3 86.9 85.7 80 • BY MUNICIPAL SERVICES: 15 SS: 8 S: 5 S: 2 60 % • BY PRIVATE COMPANIES: 11 S: 1 (capital) : 10 (Agreste region) 40 DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 15

*IBGE 2018 – estimated S Water supply Water production 20 note.: Not cumulative numbers SSewage system

0 2012 2013 2014 2015 2016 2017 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015 Cash Sufficiency Source: SNIS - SPRIS – IN101 50 120% 117 45.4 40.8 40.2 39.4 99.9 99.5 98.4 97.4 40 100% 94.8 97 94.9 36.5 91.7 81.7 80.4 77.9 30.7 30.4 80% 30 27.1

60% 21.1 19.4 20 18.7 17.6

40% 10 20% Municipal services Municipal 0 0% 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 There is, among public operators, an imbalance between revenues and total expenditures with services in the analysis period, with some im­ Treated Sewage Rate Related to Consumed Water [%] provement of the State company in 2017. 50 44.7 Average of Investments per Water and Sewage Connection [R$/connection] Source: SNIS - SPRIS – IN046 40 68.3 70 Source: SNIS - SPRIS 60.9 60 60 30.6 55.7 30 28.7 27.1 26.7 50 22.9 20.2 Private companies Private 40 20 18 17.9 17.6

30 27.3 10 9.2 9.2 20

10 7.4 0 4.2 3.4 3.8 2.9 4.3 3.8 2012 2013 2014 2015 2016 2017 0 2012 2013 2014 2015 2016 2017 SNIS 2017 data demonstrate that: 88.71% of the population of Alagoas The private companies have invested a total of R$191.93 million in water State relies on water supply services; 22.35% of the population relies production systems in the analysis period, and another R$168.5 million on sewage collection services; for the sewage, 20.04% is properly will be invested on sewage systems, of which R$23.6 million has already treated before released in water bodies. Sanitary sewage services by been invested until 2018. The sanitary sewage system in the capital private company come into operation in the capital of the State in the comes into operation in 2019.. first half of 2019. 26 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Maceió, standing out in the Northeast

THE SEWAGE SYSTEM in the upper part of Maceió, the capital of Alagoas State, where 33% of the population lives, is being implemented thanks to the PPP (Public-Private Partnership) between the Casal, State sanitation company, and the GS Inima Brasil Group. MACEIÓ The concessionaire Sanama – Saneamento Alta Maceió has al­ ready invested R$23.5 million only in the initial phase of the project, which includes the construction of sewage networks and the beginning of the sewage treatment plant construc­ tion works. The investment planned for 2019 is approximately R$100 million with the completion and operation of the STP.

Signed in 2014 for a 30 years’ period, the PPP contract provides for the planning and implementation of sewage system (which includes the construction of sewage treatment plant and col­ lection network) which will benefit about 300,000 people. The total investment planned is R$168.5 million.

Investment since the beginning of the contract until December 2018: R$ 23.5 million

Total investment: R$ 168.5 million

27 AMAZONAS

SERVICES COVERAGE LEVEL POPULATION: 4.080.611* | MUNICIPALITIES: 62 Source: SNIS - SPRIS – IN023 - there are 61 municipalities which Urban Water Assistance Rate [%] 100 98 can only be accessed by river assisted municipalities 93.6 95.7 91 91.1 90.9 89.7 87.9 85.8 88.2 ASSISTED MUNICIPALITIES: 83.2 84.3 • BY STATE COMPANY COSAMA: 12 80 S: 12 60.6 60.3 60 57.7 57.4 56.5 55.5 • BY MUNICIPAL SERVICES: 17 SS: 3 S: 13 S: 1 40 • BY PRIVATE COMPANIES: 1 SS: 1 20 DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 32

*IBGE 2018 – estimated S Water supply 0 note.: Not cumulative numbers SSewage system 2012 2013 2014 2015 2016 2017 Sewage Collection Rate [%] ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS 80 70.8 Source: SNIS - SPRIS – IN015 Cash Sufficiency Source: SNIS - SPRIS – IN101 70 Municipal services Municipal 120% 60 111.8 103.8 103.9 102.4 50 47.5 100% 98.4 97.8 95.6 44.1 44 88.5 84.8 86.9 85.8 86.1 40 35.5 34.1 80% 30 24.3 24.7 24.8 25.7 23.9 23.8 60% 20

10 40%

0 19 20.8 2012 2013 2014 2015 2016 2017 20% 18 17 15.1 17.2 Private Companies Private 0% Treated Sewage Rate Related to Consumed Water [%] 2012 2013 2014 2015 2016 2017 50 In general, the operators face difficulties to maintain the balance be­ 47.5

tween total revenues and expenditures. Source: SNIS - SPRIS – IN046 40 Average of Investments per Water and Sewage Connection [R$/connection]

Source: SNIS - SPRIS 30 200 24.7 24.8 196.7 24.3 23.9 23.8

20 152.1 150 State Company State 10 118.5 117.7 105.4 100 0 0 0 0 0 0 0 73.3 2012 2013 2014 2015 2016 2017

53.8 50 36.3 25.4 SNIS 2017 data demonstrate that: 88.37% of the Amazonas State popu­ 20.4 17.2 18.2 14 12.8 8.8 lation relies on water supply; 47.28% of the population relies on sewage 2.2 3 1.9 0 collection services. For the sewage, 43.59% are properly treated before re­ 2012 2013 2014 2015 2016 2017 leased in water bodies. The State company does not provide sewage sys­ tem services. According to PLANSAB, the northern region has the highest During the analysis period, it was found that most of the investments percentage of wells or headwaters for water supply, being 29.3% internal were made by the private company. plumbing and 11.5% without plumbing. 28 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Manaus moves forward with more investments

BORDERED by the world’s largest river basin, the Amazonian The people from Manaus will have five more water reservoirs in capital has great challenges to ensure that its population of more the first half of next year. Together, the reservoirs will benefit than 2 million people has full access to water and sewage services. approximately 450,000 people.

The private concessionaire Águas de Manaus, of the Aegea The Concessionaire Águas de Manaus intends to consolidate group, which took over the operation in November, 2018, is the implementation of the Social Tariff, through their relation­ planning to invest R$880 million in the expansion of water ship programs. The program gives 50% discount on sewage supply and sewage treatment services in the city. The predic­ and water bills for low-income users. tion is that, only in 2019, R$160 million are invested. . Manaus will have, until 2030, 80% of sewage collection and treatment. This means to expand five times the current Until 2030, the city will have capacity, in addition to being an important commitment of the private sector for the preservation of the environment 5 times in Amazon. Still in 2019, 40,000 m of sewage networks will be the current capacity of sewage deployed or replaced, and nine sanitary sewage systems that collection and treatment already exist in the city will undergo renovation and expansion.

The concessionaire also plans to continue the expansion of wa­ ter services – regularization and expansion of water supply – in the North and East areas of the city, as a matter of priority. 100% In this way, 18,000 meters of new water networks will be built in areas still not assisted. Other 19,000 meters of existing distribution networks will be replaced. Some pipelines of the 80% in 2010 city are being duplicated, as the section coming out of the Production Complex of Ponta do Ismael and running through the reservation center Alvorada, in the Midwest part of the city.

New reservoirs will increase the water reserve capacity in about 30 million liters 16%

29 BAHIA

SERVICES COVERAGE LEVEL POPULATION: 14.812.617* | MUNICIPALITIES: 417 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: 100 94.7 96.1 95 94.8 93.8 94.7 94.2 94.6 94.4 94.1 94.5 • BY STATE COMPANY EMBASA: 366 92 SS: 103 S: 263 80 • BY MUNICIPAL SERVICES: 62 SS: 20 S: 16 S: 26 60 • BY PRIVATE COMPANIES: 2 S: 2 (PPP) 40

DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 21 20 *IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system 0 2012 2013 2014 2015 2016 2017 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015 Cash Sufficiency Source: SNIS - SPRIS – IN101 100 100 96.5 96.8 118 119.7 120% 117.4 87.3 Municipal Services Municipal 111.5 111 111.1 110.2 107.7 110.4 108.1 102.5 80 99.9 75.5 100% 68.2

57.3 59 58.2 80% 60 56.1 51.3 50.6 51.7 51.7 45.5 46.2 42.6 41.7 60% 40

40% 20

20% 0 2012 2013 2014 2015 2016 2017 Private Companies Private 0% 2012 2013 2014 2015 2016 2017 In general, the operators presented reasonable balance between total Treated Sewage Rate Related to Consumed Water [%] income and expenditure with services in the analysis period. Source: SNIS - SPRIS – IN046 100 100 96.1 96.8 86.9 Average of Investments per Water and Sewage Connection [R$/connection] 80 250 75.4 67.9 212.9 Source: SNIS - SPRIS 60 56.9 58.2 200 55.6 50.5 50.1 51.2

155.8 150.4 40 State Companie State 150

116.3 113.4 20.8 20 21.7 103.8 20 17.8 17.9 100 13.7

0 50 2012 2013 2014 2015 2016 2017 21.5 22.4 21.2 11.1 8.6 13.2 0 SNIS 2017 data demonstrate that: 94.13% of the Bahia State population 2012 2013 2014 2015 2016 2017 relies on water supply; 55.71% of the population relies on sewage collection services. For the sewage, 52.38% are properly treated before The State company has maintained ongoing investments. The values released in water bodies. Highlighting the sewage system rates in invested by municipal services are minimal. The private company’s invest­ two municipalities of the Metropolitan Area operated by the private ments in sanitation have been completed in 2011, totaling R$259.33 million. company, towards universalization. 30 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

Bahia eaps the benefits of the first sewage PPP

Salvador

BAHIA has the first sewage PPP of the country. The conces­ sionaire BRK Ambiental is responsible for the operation of the first Ocean Outfall System of Jaguaribe City (SDOJ), which All the construction works have been benefits more than 1 million people in the metropolitan completed, at an investment of region of Salvador, and helps preserve an important section of the Bahian coast. R$ 261 million.

The contract, in force since 2006, includes the implementation of an Ocean disposal system consisting of a pump station with a capacity of 2.27 m³/s, discharge line with diameter Ø1,200 mm and 1,000 meters long, pre-treatment plant with capacity of 3 m³/s, land and undersea outfall with a capacity of 5.9 m³/s, diameter Ø1,600 mm and, 1,368 and 3,670 meters long, respectively.

31 ESPÍRITO SANTO

SERVICES COVERAGE LEVEL

POPULATION: 3.972.888* | MUNICIPALITIES: 78 Source: SNIS - SPRIS – IN023 Urban Water Assistance Rate [%] 100 99 99.7 100 100 99.2 99.6 98.9 99.8 100 95.6 97.1 97.9 95.4 91 91.7 91.6 ASSISTED MUNICIPALITIES: 90.1 88.4 • BY STATE COMPANY CESAN: 52 SS: 28 S: 24 80

• BY MUNICIPAL SERVICES: 35 60 SS: 24 S: 11

•BY PRIVATE COMPANIES: 3 40 SS: 1 (Full Concession) S: 2 (PPP)

20 *IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system 0 2012 2013 2014 2015 2016 2017 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage100 Collection Rate [%] Source: SNIS - SPRIS – IN015 Cash Sufficiency Source: SNIS - SPRIS – IN101 82.1 150% 79.7 Municipal Services Municipal 80 74.5 74.7 74.8 74.9 75 136.8 137.4 136.9 70.8 71.8 133.1 130.1 129.7 127.5 128.3 125.3 126.4 129.6 67.4 67.8 123.8 123.2 121.9 121.2 63 116.7 116.4 120% 113.9 60

44.6 90% 40.5 40 34.6 30.6 32.2 33

60% 20

30% 0 2012 2013 2014 2015 2016 2017

Private Companies Private 0% 2012 2013 2014 2015 2016 2017 Treated Sewage Rate Related to Consumed Water [%] In general, the operators present reasonable balance between total in­ Source: SNIS - SPRIS – IN046 come and expenditure with services. 80 78.3 73.6 71.6 71.3 69.8 70 Average of Investments per Water and Sewage Connection [R$/connection] 62 60

346.1 350 Source: SNIS - SPRIS 50 43.3 303.3 38.2 300 40 280.9 285 31.9 32.7 30 30.6 30 27.9 250 232.3 24.2 23.2 24.9 23.7 225.2 21 State Companie State 199.8 20 200 171.4 162.6 10 150 0 106.5 2012 2013 2014 2015 2016 2017 100 64.3 52.8 50 SNIS 2017 data demonstrate that: 90.59% of the Espírito Santo State 24.2 13.2 17.8 17.4 12.9 15 population relies on water supply; 54.39% of the population relies on 0 sewage collection services. For the sewage, 41.77% are properly treated 2012 2013 2014 2015 2016 2017 before released in water bodies. Highlighting the sewage collection rates Most of the investments were made by the State company. Two PPP con­ of municipal services; and sewage collection and treatment rates of private tracts of sanitation are recent (2014 and 2017) and foresee R$1.10 billion companies. In relation to the water supply, the only municipality assisted investment in the contract period. by private company has reached the universalization of this service. 32 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Cachoeira de Itapemirim, one of the pioneers

Chart: 98.4% of sewage is collected and THE CITY is one of the first in Brazil to grant the concession for 98.15% of sewage is treated the operation of water supply and sewage treatment services to a private company, in 1998. Today, with the concessionaire BRK Ambiental, the Municipality is a reference in sanitation and became one of the cities with highest percentage of assistance.

Currently, 98.4% of houses have sewage collection and 98.15% of the sewage is treated. To achieve this assistance rate, more than 218 kilometers of collecting networks were built, as well as trunk sewers and interceptors, in addition to 11 Sewage Treatment Plants

As a result of the investment in the sewage system, the Itapemirim River had back its fauna of natural waters. Espirito Santo

Vila Velha with new sanitation system

THE SEWAGE PPP which operates in the city since 2017, through the concessionaire Vila Velha Ambiental, of the Aegea Group, aims to universalize the services and benefit about 470,000 people of up to nine years. Today, only 56% of the city has sewage system Vila Velha services. In less than two years, the company replaced more than Cachoeira do 50,000 water meters, with positive impact on the public part­ Itapemirim ner’s revenues, and has activated more than 8,000 household connections. The expansion construction works are scheduled as of 2020, after the expansion of the sewage treatment plant by the public partner.

Vila Velha Ambiental aims to universalize the service within 9 years.

33 GOIÁS

SERVICES COVERAGE LEVEL

POPULATION: 6.921.161* | MUNICIPALITIES: 246 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 98.2 99.2 100 95.5 96.2 96.7 96.1 97.5 96.5 ASSISTED MUNICIPALITIES: 94 94.4 92.7 94 • BY STATE COMPANY SANEAGO: 225 SS: 73 S: 152 80 • BY MUNICIPAL SERVICES: 17 SS: 7 S: 7 S: 3 60

• BY PRIVATE COMPANIES: 4 S: 4 (subdelegation) 40

DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 7 20

*IBGE 2018 – estimated S Water supply 0 note.: Not cumulative numbers SSewage system 2012 2013 2014 2015 2016 2017

ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015 100

Municipal Services Municipal Cash Sufficiency Source: SNIS - SPRIS – IN101 85.1 76.5 80 80 151.1 146.2 150% 138.9 140.5 132.7 61.2 56.7 126.5 59.9 116.1 121.2 60 51 52.3 53.2 54.5 52.6 111.8 104.7 110.3 50.1 47.9 48.8 48.6 51.1 101.1 92.5 92.2 95.7 47.6 45.1 100% 88.4 84.9 40 66.8

50% 20

0

Private Companies Private 0% 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017

In general, public operators demonstrate balance between revenues and Treated Sewage Rate Related to Consumed Water [%] expenditures. Except the financial years of 2014 and 2015 of the State Source: SNIS - SPRIS – IN046 company and the private companies. 59.9 60 55.4 48.1 49.5 49.8 50.7 Average of Investments per Water and Sewage Connection [R$/connection] 50 46.9 46.3 46.8 47.7 44.9 45.1 45.2 46.6 250 43.7 41.4 41.9 217.1 40 Source: SNIS - SPRIS 200 170.3 30 State Companie State 156.1 150 145.7 140.6 148.3 20 133.1 20

100 88.4 91.2 93.2 10 75.9 75 59.3 48.3 0 50 35.7 2012 2013 2014 2015 2016 2017

9.1 0 0 0 SNIS 2017 data demonstrate that: 97.52% of the Goiás State population 2012 2013 2014 2015 2016 2017 relies on water supply; 54.62% of the population relies on sewage collec­ tion services. For the sewage, 47.95% are properly treated before released Private companies began to invest in 2015 and the results were observed in water bodies. Highlighting the improvement of sewage collection rates in 2017. Highlighting the investments in municipal services in 2017. of municipal services. 34 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

Goiás: solutions for sewage system

SINCE 2013, the private concessionaire BRK Ambiental is sub-delegated to the State company for operation and main­ 54% tenance of sewage system services in the cities of Aparecida de Goiânia, Jataí, Rio Verde and Trindade. The purpose of 41% the contract is to universalize the sewage system in these

municipalities and reach 90% of water collection and TRINDADE treatment, which will benefit 1 million people, ensuring more health and life quality for the population.

The concessionaire is investing approximately R$1 billion in the 45% construction of new networks, pumping stations and sewage treatment plants, beyond the expansion of existing structures. Until 2018, over R$437 million was invested in the expansion of sewage collection and treatment systems. In 2018, 380 kilometers 29% of networks were built, in addition to the second stage construc­ tion works of the STP Santo Antônio – Aparecida de Goiânia; Modernization of the STP Rio Claro - Jataí; Implementation of the STP Chapadinha – Rio Verde; and modernization of the STP Barro DE GOIÂNIA APARECIDA Preto – Trindade. In 2019, 158 million are planned to be invested. 60% 75%

47% 61% The four cities have been benefited since the sewage coverage increased by 32% with

private investments. VERDE RIO

JATAÍ Benefited cities: In Trindade, sewage collection has increased from 41% to 54%; Aparecida de Goiânia, from 29% to 45%; Rio Verde, 47% to 60%; Jatai, 61% to 75%.

35 MARANHÃO

SERVICES COVERAGE LEVEL

PPOPULATION: 7.035.055* | MUNICIPALITIES: 217 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: 100 • BY STATE COMPANY CAEMA: 141 88.6 83.5 83.8 84 85 84.4 84.4 77.2 SS: 3 S: 138 80 72.8 71.2 68.9 71.2 70.4 69.2 70.6 • BY MUNICIPAL SERVICES: 28 SS: 8 S: 19 S: 1 60

• BY PRIVATE COMPANIES: 3 SS: 3 (concessions de 2015) 40

DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 45 20 *IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system 0 2012 2013 2014 2015 2016 2017 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS

Cash Sufficiency Sewage Collection Rate [%] 147.6 Source: SNIS - SPRIS – IN101 60 150% 54 Municipal Services Municipal Source: SNIS - SPRIS – IN015 127.9 50 120% 41.5 106.8 103.2 102.5 100.1 100.9 40 90.1 36.1 35.5 90% 32.6 33 82.1 27.8 31 72.5 77.6 30 67.5 26.3 61.6 63.6 60% 20 43.4

8.9 9.6 7.2 9.3 30% 10 6.4 6.7

0% 0 Private Companies Private 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 In the analyzed period, only the municipal services have demonstrated balance between revenues and total expenditures. Contracts are recent, so information from private companies reflects the operating results of Treated Sewage Rate Related to Consumed Water [%] the concession of services which the operations were granted.

40 Source: SNIS - SPRIS – IN046 Average of Investments per Water and Sewage Connection [R$/connection] 36.6 35 1200 Source: SNIS - SPRIS 30 1000.6 28.3 1000 25

800 State Companie State 20

600 15 11.7 12 12.4 9.9 10 7.9 400 6 317.6 5.5 5 4 235.1 2.1 2.6 2.7 2.5 150.2 151.9 200 0 0 0 0 122.3136.5 125.3 114.2 133.9 0 16.2 58.2 2012 2013 2014 2015 2016 2017 17.4 13.8 13.4 0 2012 2013 2014 2015 2016 2017 SNIS 2017 data demonstrate that: 73.83% of the Maranhão State popu­ lation relies on water supply; 28.13% of the population relies on sewage The State company made constant investments during the analyzed collection services. For the sewage, 9.18% are properly treated before period. Private companies began to invest in 2015 and 2016. Highlighting released in water bodies. Indicators of private companies present some the investments in municipal services in 2017. improvement, both in sewage collection and sewage treatment . 36 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 São José de Ribamar and Paço de Lumiar: revolution in sanitation access

IN 2015, the municipalities of São José de Ribamar and Paço “In little more than three years of private de Lumiar decided, together, to improve sanitation conditions. concession, the water supply has tripled Since then, both municipalities have granted the concession in São Jose do Ribamar, and for operation of water and sewage services to the concession­ increased by 50% in Paço do Lumiar” aire BRK Ambiental.

In a few years, there has been a revolution in access to treated water and sewage system in both cities. Until 2014, only 18.9% Maranhão and 40.9% of the population of São José de Ribamar and Paço 60% de Lumiar, respectively, had regular access to drinking water in their homes. Today these values are 60% and 80%. Only in 2019, the concessionaire will invest R$21 million to expand the provision of water in two municipalities of Maranhão State. 18,9%

With regard to sanitation, only 8% of both cities’ inhabitants had sewage collection and treatment in 2015. Currently, 38% 2014 CURRENTLY of São José de Ribamar and 25% of Paço de Lumiar inhabitants have access to collecting networks. In the next eight years, the São José do Ribamar goal is to reach 80%.

Timon develops Paço de Lumiar

RESPONSIBLE for water supply and wastewater treatment in the urban area of Timon (MA), the concessionaire Águas de Timon has already invested over R$40 million in supply improvements from 80% 2015, directly benefiting 160,000 people, in addition to promoting the universalization of water in the first year of operation.

The concessionaire has installed 66,000 m of new networks; built 40,9% the Water Treatment Plant - WTP Parnaíba and refurbished 41 treatment systems. Communities that did not have access to treat­ ed water now have regular supply. 2014 CURRENTLY In addition, Águas de Timon is preparing new sewage construction works. In the urban area of the city, 100% of the sewage will be treated by 2026. Over the 30 year period of the concession contract, “Timon became the first city the investments will be approximately R$207 million. in the State of Maranhão to universalize water supply”

37 MATO GROSSO

SERVICES COVERAGE LEVEL POPULATION: 3.441.998* | MUNICIPALITIES: 141 Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: Urban Water Assistance Rate [%] 99.9 99.9 99.9 99.7 100 98.2 96.8 • BY MUNICIPAL SERVICES: 75 96.3 94.7 93.6 93.5 94 95.3 SS: 15 S: 60 80 • BY PRIVATE COMPANIES: 37 SS: 21 S: 16 60 DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 29

The State company SANEMAT ceasedactivities in 2000. 40

*IBGE 2018 – estimated S Water supply 20 note.: Not cumulative numbers SSewage system

0 2012 2013 2014 2015 2016 2017 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015 Cash Sufficiency Source: SNIS - SPRIS – IN101 50 46.3 150% 137.2 40.5 41 132.3 39.2 38.8 127.1 40 121.3 123.4 122.2 36.6 114.6 117.1 34.7 120% 113.6 105.5 108.9 104.2 30.7 28.6 30 25.3 25.5 90% 22.1 20 60%

10 30% Municipal Services Municipal 0 0% 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017

In general, the operators presented good balance between total income Treated Sewage Rate Related to Consumed Water [%] and expenditure with services in the analysis period. 34.8 35 34.4 Source: SNIS - SPRIS – IN046 32.7 32.4

Average of Investments per Water and Sewage Connection [R$/connection] 30 28.8 27.3

600 25 22.1 527.4 Source: SNIS - SPRIS 18.7 19.4 20 500 16.9 17.8 15.6

Private Companies Private 15 400 358.5 322 311.4 322.6 10 300 5 173.8 200 0 2012 2013 2014 2015 2016 2017 100 66.7 39.6 33.8 30.5 34.2 14.6 SNIS 2017 data demonstrate that: 97.65% of the Mato Grosso State pop­ 0 2012 2013 2014 2015 2016 2017 ulation relies on water supply; 40.1% of the population relies on sewage collection services. For the sewage, 33.23% are properly treated before The predominance of private investment is relevant in the State released in water bodies. The sewage collection and treatment indicator during the analysis period. of private companies has increased slightly in the analysis period. 38 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Cuiabá celebrates new stage of investments

Mato Grosso

Cuiabá

R$ 601,16 Average of Investments per Water and Sewage Connection

THE COMPANY Águas de Cuiabá, of the company Iguá Sanea­ R$ 173,72 mento, took over the sanitation services from the capital of Mato Grosso State only two years ago, in August, 2017, aiming to invest R$674.5 million until 2023.

To celebrate the tercentenary of the city, in 2019, the Águas de 2016 2018 Cuiabá will develop the Águas de Cuiabá 300 Years Investment Program, which defines the sanitation actions to be undertaken in the Municipality. With a contribution of R$228 million, investments provide actions on water and sewage treatment to benefit the population, improving the life quality and dignity of the families. Besides benefiting the population, So, since the company began operating in the city, the investments also benefit the Cuiabá and investment level in sanitation has risen significantly. In 2016, Coxipó rivers, improving the environmental before the full concession period, the average investment sustainability of the region per water and sewage connection was only R$173.72. As to 2018, the average investment rose to R$601.16. 39 MATO GROSSO DO SUL

SERVICES COVERAGE LEVEL

PPOPULATION: 2.748.023* | MUNICIPALITIES: 79 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: 99.9 99.7 99.5 99.7 99.7 99.8 99.5 99.8 100 99.1 99.7 99.3 98.7 99 98.9 97.7 99 99 99.5 • BY STATE COMPANY SANESUL: 68 SS: 47 S: 21 80 • BY MUNICIPAL SERVICES: 8 SS: 5 S: 3 60 • BY PRIVATE COMPANIES: 1 SS: 1 40 DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 2 *IBGE 2018 – estimated S Water supply 20 note.: Not cumulative numbers SSewage system

0 2012 2013 2014 2015 2016 2017 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%] 59.7 59.8 60 Source: SNIS - SPRIS – IN015 57.5 58.3 Municipal Services Municipal Cash Sufficiency Source: SNIS - SPRIS – IN101 54.8 55.6 55.6 200% 51.6 50 48.5 178.2 167.2 42.1 43.4 158.2 152 148.9 150.6 40 150% 141.7 36 134.1 126.8 128.4 129.9 125.8 124.3123.6 122 125.8 29.4 119.8 116.4 30 27.5 24.6 100% 21.6 20 18.3 15.9

10 50%

Private Companies Private 0 2012 2013 2014 2015 2016 2017 0% 2012 2013 2014 2015 2016 2017 In general, the operators present balance between total income and Treated Sewage Rate Related to Consumed Water [%] expenses with services. 59.8 60 Source: SNIS - SPRIS – IN046 58.3 59 54.8 55.7 55.6 54.9 51.6 50 48.5 Average of Investments per Water and Sewage Connection [R$/connection] 500 42.9 40 40 34.9 405.4 Source: SNIS - SPRIS 400 29.4 30 27.5 24.6 State Companie State 319.7 21.6 300 20 18.3 268.4 15.4 218.1222.2 10 200 194.3 168.4 168.2 153.3 162.4 0 103.6 107.4 2012 2013 2014 2015 2016 2017 100 63.4 71.7 64 45.9 30.3 9.4 SNIS 2017 data demonstrate that: 99.34% of the Mato Grosso do Sul State 0 2012 2013 2014 2015 2016 2017 population relies on water supply; 42.49% of the population relies on sewage collection services. For the sewage, 42.46% are properly treated Highlighting the private sector that has invested 1.6 times more than before released in water bodies. Highlighting the improvement of the the State company. sanitation indicators of the private enterprise and the municipal services. 40 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Campo Grande is a good example among the capitals

COUNTING ON the private concessionaire Águas de Guariroba, of the Angea Group, Campo Grande should be one of the first Brazil­ ian capitals to achieve the universalization of sewage treatment.

At the beginning of the concession period, in 2000, the sanitary sewage services - available for only 18.7% of the inhabitants – was one of the greatest challenges facing the capital of Mato Grosso do Sul.

The concessionaire has instituted a program whereby, in just three years, construction works were carried out to double the The target is to universalize sewage network of Campo Grande, raising the sewage collec­ 3ª STAGE sanitation services throughout the city. tion and treatment rate to 60% in 2008. 2025

From 2010, Águas Guariroba began the second stage of the program, continuing the expansion of the system in the city. With the completion of this second phase in 2013, 73% of the population had sewage collection and treatment.

Currently, the service is available to over 80% of the city. In partnership with the Municipal Administration, the company expands the sewage network in neighborhoods with paving and drainage construction works through the PAC (Growth 2ª STAGE 73% of the population has sewage Acceleration Program), facilitating investment and ensuring collection and treatment. development to the city in a planned and sustainable way. 2010 a 2013

As to water treatment, great advances were also made. The treated water supply reached 96% and, today, is universalized, reaching 100% of the 853,000 inhabitants. The concessionaire has invested in efficient water supply systems and reduced losses from 56% to 19% – making Campo Grande one of the capitals with the lowest loss rate in Brazil.

“Without the investments of the private concession – which will reach R$1.6 billion over Sewage system the contract – the city would still be far from 1ª STAGE available for only 18.7% the universalization of sanitation” 20O0 of the inhabitants

41 MINAS GERAIS

SERVICES COVERAGE LEVEL POPULATION: 21.040.662* | MUNICIPALITIES: 853

Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: 98.6 100 97.9 98.6 100 98.7 99.8 98.4 • BY STATE COMPANY COPASA: 579 100 97.5 97.5 95.6 97.3 98 95.8 96.2 SS: 215 S: 364 90.2 89.8 89.4

• BY STATE COMPANY COPANOR: 47 80 SS: 36 S: 11 60 • BY MUNICIPAL SERVICES: 360 water production water SS: 172 S: 13 S: 175 40

• BY PRIVATE COMPANIES: 18 – estimadet 2018 *IBGE SS: 4 (full concessions) : 14 (PPP contract) 20 NDID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 45 Water supply Water obs.: Números não cumulativos e de complexa identificação Sewage system 0 S S 2012 2013 2014 2015 2016 2017 dos operadores públicos em inúmeros municipalities.

Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS 100 90.6 Municipal Services Municipal Cash Sufficiency Source: SNIS - SPRIS – IN101 83.4 79.9 79.9 81.4 80.6 80.1 81.9 80.9 80 77.9 200% 69 68.9

60 157.9 53.7 54.5 153.6 51.4 52.6 53.5 53.5 150% 139.1 132 121.5 119.9 40 114.4 113.5 117.6 111.2 110.8 108.5 108.3 100.8 99.5 99.4 100% 94.4 80.1 20

50% 0 2012 2013 2014 2015 2016 2017 Private Companies Private

0% Treated Sewage Rate Related to Consumed Water [%] 2012 2013 2014 2015 2016 2017 Souce: SNIS - SPRIS – IN046

In general, the operators present good balance between total income 100 and expenditure with services. 90.3 80.1 81.7 80 Average of Investments per Water and Sewage Connection [R$/connection] 71.8 400 69 68.9 360.4 Source: SNIS - SPRIS 350 60

300 41.5 38.2 38.9 39.9 40 35.4 State Companie State 250 32.1 29 28.1 30.8 25.7 27.8 27.7 200 20 149.9 150 129.4 131.8 123.8 115.8 108.2 100 0 81.4 2012 2013 2014 2015 2016 2017 54.9 62.9 55.7 47.1 43.9 51.7 50 29.4 33.4 5.6 1.1 SNIS 2017 data demonstrate that: 92.59% of the Minas Gerais State pop­ 0 2012 2013 2014 2015 2016 2017 ulation relies on water supply; 64.47% of the population relies on sewage collection services. For the sewage, 37.88% are properly treated before State enterprises have maintained a stable pattern of investments up released in water bodies. Highlighting the sewage collection indicators of to 2015, with a significant decrease in 2016 and 2017. Highlighting the municipal services and sewage collection and treatment levels of private private investments started in 2015. companies towards the universalization. 42 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Manso River System ensures water security The Rio Manso PPP was THE CONSTRUCTION and operation of some structures of instrumental for Minas Gerais the Manso River system, in the metropolitan region of Belo State face the water crisis of Horizonte, was made possible through a PPP, established in 2013 2014/2015 with water supply. between the private concessionaire and the State company.

The objectives of the partnership are to expand and modern­ ize water and sewage treatment processes, and improve the ability of the adduction system. The contract benefits more than 5 million people.

BRK Ambiental is responsible for duplicate the collection, ad­ duction and treatment system. The company also built the new Minas Gerais water intake structure of the Paraopeba river, also justified by the great water crisis that struck the southeast of the country between 2014 and 2015. The work allowed the State company to Belo Horizonte go through that period without water shortages in the region. Pará de Minas The Manso river is responsible for over 30% of the water that supplies 21 cities belonging to the integrated supply system of COPASA. With the expansion of treated water production and supply capacity, the water supply went from 4.2 m³/s to 5.8 m³/s in a 32 km section. The PPP operates part of the structures for a 13 years’ period. The planned investment is R$625 million.

The system – that solve the chronic Pará de Minas ensures water shortage problems – was delivered in record time by the private concessionaire: water supply only 5 months

WHEN the private concessionaire Águas de Pará de Minas, of the With the change of management and investments of about Águas do Brasil Group, took over the sanitation services of the mu­ R$40 million in the construction of the pipeline to capture nicipality in 2015, it has found neighborhoods that had up to 20 water in the Paraopeba River, the company solved the lack of days of water shortage. There were non-supply moments, and the water problem, including during the period of drought. supply schedules needed to be advertised on radio and local media. Thanks to the actions carried out by the concessionaire, the At the height of the crisis, in 2013 and 2014, there were no in­ sewage and water service rates of the city are well above the vestments in sanitation for about 30 years. The municipality national average (99.4% of water supply and 98.4% of sewage has declared state of public emergency. collection and treatment). 43 PARÁ

SERVICES COVERAGE LEVEL

POPULATION: 8.513.497* | MUNICIPALITIES: 144 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: 100 • BY STATE COMPANY COSANPA: 53 SS: 4 S: 49 82.4 82.4 80 • BY MUNICIPAL SERVICES: 27 69.2 62.7 62.8 61.4 58.4 SS: 7 S: 19 S: 1 60 50.3 49.3 50.7 48.6 49.7 • BY PRIVATE COMPANIES: 12 43 42.9 35.1 SS 40 37.3 : 12 (full concessions) 34.3 33.3 DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 54 20 *IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system 0 2012 2013 2014 2015 2016 2017 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS

Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015 40 38.8 Municipal Services Municipal Cash Sufficiency Source: SNIS - SPRIS – IN101 35.9 35 200% 189.3

175% 30

150% 25 121.5 18.2 20.1 125% 118.2 20 114.1 109 16.7 14 100% 15 12.1 10 75% 64.1 56.3 54.8 50.4 52.2 44 49.5 50.1 42.4 47.4 47.2 50% 5 38.8 38.6 2.5 2.5 2.5 2.7 3.3 2.8 Private Companies Private 25% 0 2012 2013 2014 2015 2016 2017 0% 2012 2013 2014 2015 2016 2017 Public operators presented financial deficit during the analysis period. Treated Sewage Rate Related to Consumed Water [%] Private companies demonstrate balance between revenues and total 35 expenditures with services, except in 2015. 31.9 Source: SNIS - SPRIS – IN046 30.6 30

25 Average of Investments per Water and Sewage Connection [R$/connection] 20.1 20 625.1 600 Source: SNIS - SPRIS State Companie State 15

500 10 7.2 400 5.6 5.4 3.5 5 300 0.9 0.7 0.9 0.6 1.6 0.6 210.1 0 200 2012 2013 2014 2015 2016 2017

99.3 75.1 100 75.3 38.8 16.6 27.6 17.1 17.8 19.4 4.6 10.3 15.3 2.9 5 17.7 11.7 SNIS 2017 data demonstrate that: 57.02% of the Pará State population 0 2012 2013 2014 2015 2016 2017 relies on water supply; 9.65% of the population relies on sewage collec­ tion services. For the sewage, 6.27% are properly treated before released in water bodies. The role of private companies in the analysis period was Most of the investments were made by private companies from 2014. restricted to covering the deficit of water supply. 44 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Novo Progresso

Novo Progresso IN A STATE with very low coverage rates, 12 municipalities rely on the operation of private concessionaires to reverse the water coverage and sewage collection and treatment deficit. With investment and management, there are already successful experiences with the population of Pará. SANITATION SERVICES (PER INHABITANT).

According to the map “The Reality of Sanitation in Brazil”, organized by the CNI News Agency, in the municipality of Average of sanitation Novo Progresso, the private concessionaire Águas de Novo services per inhabitant Progresso invests four times more than the average – per inhabitant – in sanitation.

Between 2017 and 2021, the private sector provides for invest­ ments of R$113 million in the State. 

Novo Progresso In some cases, the private sector invests 4 times more than the average per inhabitant  45 PARANÁ

SERVICES COVERAGE LEVEL

POPULATION: 11.348.937* | MUNICIPALITIES: 399 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023

99.6 100 99.9 100 99.9 98.8 99.9 100 99.2 100 99.7 99.9 100 99.5 ASSISTED MUNICIPALITIES: 100 99.2 98.4 96 99.5 • BY STATE COMPANY SANEPAR: 345 SS: 185 S: 160 80 • BY MUNICIPAL SERVICES: 45

SS: 20 S: 25 60 • BY PRIVATE COMPANIES: 1 SS: 1 40

DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 8 20

*IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system 0 2012 2013 2014 2015 2016 2017

ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%] 100 95.9 Source: SNIS - SPRIS – IN015

Municipal Services Municipal 81 81.2 Cash Sufficiency Source: SNIS - SPRIS – IN101 77.4 75 74.9 80 71.8 200% 68.2 69.9 69.4 71.2 63.7 65.5 66.6 175.8 62.7 58.6 60 53.1 50.1 150% 136.7 126 127.1 128 117.7 121.6 121.3 40 111 113.2 114.4 112.4 113.2 109.3 107.1 102.9 95.7 98.2 100% 20

50% 0 2012 2013 2014 2015 2016 2017 Private Companies Private

0% Treated Sewage Rate Related to Consumed Water [%] 2012 2013 2014 2015 2016 2017 80 Source: SNIS - SPRIS – IN046 71.8 In general, operators present reasonable balance between total income 66.2 68.1 69.9 67.1 68.7 70 and expenses with services. 63.3 65 63 62.9 60.6 63 56.2 60 51.8 53.5 48.7 Average of Investments per Water and Sewage Connection [R$/connection] 50 1000 932.2 40

29.5 30 800 24.9 717.5 State Companie State 666.7 20 Source: SNIS - SPRIS

600 10

0 400 2012 2013 2014 2015 2016 2017

255.2 243.1 269.2 204.3 175.5 164.3 149.1 171.7 200 106.5 SNIS 2017 data demonstrate that: 99.97% of the Paraná State population 25.1 15.8 19 24.3 23.8 19.3 relies on water supply; 72% of the population relies on sewage collection 0 services. For the sewage, 71.58% are properly treated before released 2012 2013 2014 2015 2016 2017 in water bodies. Highlighting the private company’s sewage collection Most of investments were made by private companies, especially in indicators and the sewage treatment indicators of the State company. 2012, 2013 and 2014. Municipal services also present positive rates in sanitation. 46 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Paranaguá: technology to benefit the population Paraná

THE CONCESSIONAIRE Paranaguá Saneamento, of the Iguá Saneamento group, took over the sewage system operation in August, 2017. Before long, the company proved to be extremely efficient and modern.

Only in 2018, the company invested R$47 million to benefit Paranaguá the 150,000 residents of the municipality. One of its greatest achievements was the inauguration of the first stage of the Cominese System, transforming the lives of 40,000 people in 18 districts. With this, the sewage collection and treatment services in the city rose from 72% to 90%. Sewage The project, consisting of a Sewage Treatment Plant (STP) collection and and 22 Pumping Stations, began in June of the same year and, 90% 2018 thanks to a modular construction method, was delivered 18 treatment rate months before the deadline. The technology used in the con­ struction increased the energy efficiency of the STP, providing 72% 2017 80% less energy consumption than conventional systems. In addition, the station has the most modern technological solu­ tions, such as a European technology of biological filter, which is capable to reduce the load of organic wastes five times faster than traditional treatment systems.

The company has also implemented an Operational Control Center, which monitors the reservoirs, pumps, water and sewage treatment plants in real time, ensuring better management and speeding up the response time of lack of water demands, pressure drop on the network, leaks, among others. This data ensure agility in the provision of services, having reduced the average assistance time to leaks repair, water shortages and other, from 20 hours to 4 hours. The sewage collection rate rose Thus, with advanced technology, the company was able to improve the lives of the population in record time and with from 72% to 90% environmental responsibility.

47 PERNAMBUCO

SERVICES COVERAGE LEVEL

POPULATION: 9.496.294* | MUNICIPALITIES: 185 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: 98.6 • BY STATE COMPANY COMPESA: 173 100 97.7 95.5 94.5 94 92.9 90.4 SS: 28 S: 145 87.3 88.3 89.1 84.3 84.4 • BY MUNICIPAL SERVICES: 41 80 S: 6 S: 35

• BY PRIVATE COMPANIES: 15 60 S: 15 (PPP) 40 DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 5

20 *IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system 0 2012 2013 2014 2015 2016 2017 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS

Cash Sufficiency Source: SNIS - SPRIS – IN101 125.9

Municipal Services Municipal Sewage Collection Rate [%] 110.9 120% 41.8 41.6 Source: SNIS - SPRIS – IN015 100.8 101.1 100.2 100.4 98.3 96.8 40 80.7 90% 32.5 30.4 31 26.7 26.6 27.3 67.8 70.5 30 62.5 26 60%

20 15.4 30%

10 0% 2012 2013 2014 2015 2016 2017

Private Companies Private 0 There is financial imbalance between total income and expenditure with 2012 2013 2014 2015 2016 2017 services, both with in the State company and municipal services, with lit­ tle recovery observed in 2016 and 2017. Treated Sewage Rate Related to Consumed Water [%] 35 Average of Investments per Water and Sewage Connection [R$/connection] Source: SNIS - SPRIS – IN046 30.2 31 400 30 362 Source: SNIS - SPRIS 26.4 26.4 27.1 25.6 350 323.1 25 300 274.2 20 230.3 232.8 239.1 250 13.9 14.3 203.4 197.3 15 State Companie State 179.5 200 10 150 123.4 100 5 2.3 39.5 50 0 2012 2013 2014 2015 2016 2017 1 4 0.9 0.8 0.2 1.4 0 2012 2013 2014 2015 2016 2017 SNIS 2017 data demonstrate that: 90.56% of the Pernambuco State The State company maintained ongoing investments in the analysis population relies on water supply; 31.06% of the population relies on period. In partnership with the State company in the sewage system sewage collection services. For the sewage, 31.01% are properly treated project for the 15 cities in the Metropolitan Region of Recife, the PPP before released in water bodies. The sewage system construction works contract foresees private investments of R$2.95 billion, of which R$682.37 in the 15 municipalities of the Metropolitan Region of Recife are under­ million were materialized up to December, 2017. way since 2013. 48 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 In Pernambuco, THE LARGEST Brazil’s largest PPP sanitation PPP of Brazil, a project that benefits thousands of

The PPP between the private company BRK Ambiental and people in the sanitation State company benefits 4 million people. The partnership started in 2013 in order to operate and deploy 15 CITIES new sewage systems in the metropolitan region of Recife for a 35 years’ period. This is the largest sanitation PPP of Brazil, a successful partnership project between the public sector and private enterprise which benefits thousands of people in 15 cities.

The project advances with a large amount of resources. In Ja nuary, 2018, the private concessionaire signed an R$578 million funding agreement with the Bank of Nordeste (BNB), through the on-lending of the Constitutional Funds for Financing the Northeast (FNE) to invest in the region. The value will be for the Since the beginning of the PPP (2013), R$800 second cycle of investments from 2019 to 2023, which provides million has been invested and 2,000 jobs for the expansion and improvement of the sanitation services generated. Among the improvements to be infrastructure in 15 cities of the Recife’s Metropolitan Region. carried out are the deployment of 450 km The concessionaire’s plan foresees investments of R$900 mil­ of new sewage networks, 5 new Sewage lion for sanitation improvements in five years. Treatment Plants and 25 Sewage Pump Stations. This demonstrates that the public– private partnership can greatly improve the sanitation in the country. Olinda, achieving the water supply

Since 2016, SUEZ, leader of the Nova Olinda Consortium, contributes to improve the lives of more than 250,000 inhabitants in Olinda (PE), fighting the waste of treated water. Before 2018 From 2018 The partnership with the State company and the investment of over R$150 million are providing significant changes to the municipality with the water supply regularization.

Before January 2018, when Nova Olinda began to operate the system, the population had no water for five days to one day with water. Today, 44% of the population has water supply seven days a week, while the water supply cycle has been im­ proved to 3 days with water to 3 days without. Until 2021, 15 Today, 44% of Nova Olinda’s districts of Olinda will benefit from enhanced technologies and population has water supply infrastructure renovation, improvement and regular supply seven days a week. (water on tap 24 hours a day). 49 PIAUÍ

SERVICES COVERAGE LEVEL

POPULATION: 3.264.531* | MUNICIPALITIES: 224 Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: Urban Water Assistance Rate [%] 99.3 97.4 • BY STATE COMPANY AGESPISA: 156 100 94.5 96.3 94.9 96.2 95.1 96.1 95.9 965 96.3 95 SS: 11 S: 145

• BY MUNICIPAL SERVICES: 23 80 SS: 2 S: 17 S: 4

• BY PRIVATE COMPANIES: 1 60 SS: 1 (concession of 2017) 40 DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 44

20 *IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system 0 2012 2013 2014 2015 2016 2017 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS

Source: SNIS - SPRIS – IN101 Cash Sufficiency Sewage Collection Rate [%] 100% 93.3 60 91.2 89.7 87.1 86.2 85.2 52.1 82.1 83.6 Source: SNIS - SPRIS – IN015 76.2 77.9 80% 73.4 50

37.3 40 60%

28.5 30 40% 24.5 19.4 20 18.8 16.2 20% 11.4 10.6 Municipal Services Municipal 8.9 8.3 9.6 9.6 10

0% 2012 2013 2014 2015 2016 2017 0 2012 2013 2014 2015 2016 2017 During the analysis period, there was no balance between revenues and total expenditures with services. Treated Sewage Rate Related to Consumed Water [%] Average of Investments per Water and Sewage Connection [R$/connection] 12 Source: SNIS - SPRIS – IN046 11.4 120 10.6 9.6 9.6 104.9 10 Source: SNIS - SPRIS 8.9 100 8.3 87.3 8 80 State Companie State 6

60 51.4 4 40.2 40 24.3 1.4 20.7 21.9 2 13.2 14.2 20 11.4 0.3 2.1 0 2012 2013 2014 2015 2016 2017 0 2012 2013 2014 2015 2016 2017 SNIS 2017 data demonstrate that: 96.40% of the Piauí State population Except in 2012 and 2013, the investment values are low. Investments of relies on water supply; 11.46% of the population relies on sewage collec­ R$1.70 billion are planned for the capital of Piauí, by the private company, tion services. For the sewage, 11.37% are properly treated before released throughout the period of the concession contract. in water bodies. 50 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

Teresina, accelerates to be a sanitized city

THE CONCESSIONAIRE Águas de Teresina, of the Aegea Group, Requalification of the South Water Treatment Plant Complex is responsible for the water supply and sewage treatment (WTS - South), completion of the North Water Treatment Plant services in the urban area of the capital. Between September (WTP - North), booster installation; drilling of deep tubular wells and December, the temperatures reach 40° C, when the water and deployment of new networks and interconnections were demand increases in the period popularly known as B-E-R (in investments made to expand and modernize the water production allusion to the months ending in “ber”). When the company and distribution in the city. took over the services, in July 2017, populous areas had chronic and historical records of water shortages, particularly in the To improve the access to sewage collection and treatment Southeast and North areas. services, the subconcessionaire created the Sanitized Teresina program, which provides for the construction of seven pumping Water production increased 15% in 2018, with 17 million stations and deployment of 400 km of sewage network. In the liters per day, benefiting more than 219,000 inhabitants. Last coming years, the sewage system coverage will rise to 40%, twice year, the B-E-R period was better for the people of Teresina. the rate of Assunção city, which was 19%. Compared to 2017, water shortages have reduced by half. The first commitment made by the subconcessionaire was The actions are foreseen in the Water Investment Program and to regularize the water supply to the population, a goal that Sewage Investment Program, documents that establish guidelines integrates the main objective: to make Teresina a reference in for projects, construction works and actions. The planned invest­ sanitation in the Northeast. ment is R$1.7 billion over 30 years of the subconcession contract.

PPPS IN METROPOLITAN REGIONS X PEOPLE ASSISTED Teresina Greater São Paulo (São Lourenço System, Alto Tietê System, Mauá) 6,900,000

Greater Belo Horizonte (Rio Manso) 5,000,000

Greater Recife 4,000,000

TERESINA 1,700,000

Greater Rio de Janeiro (AP-5, São João de Meriti) 1,600,000 Piauí

Greater Salvador 1,100,000

Serra e Vila Velha (Greater Vitória) 530,000

Maceió (north region) 270,000

Aparecida de Goiânia 150,000

Total: 21,250,000

51 RIO DE JANEIRO

SERVICES COVERAGE LEVEL POPULATION: 17.159.960* | MUNICIPALITIES: 92 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: • BY STATE COMPANY CEDAE: 64 100% 96.7 97.2 97.3 97.8 98.1 98.3 90.1 90.2 91.8 89.8 SS 23 S 41 86.4 86.7 86.7 767 76 75.7 75.5 74.6 80% • BY MUNICIPAL SERVICES: 29 SS 10 S 1 S 18 60%

• BY PRIVATE COMPANIES (CONCESSIONS): 20 SS 14 full S 2 partial S 4 partial and ppp 40%

DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 6 20%

*IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system 0% 2012 2013 2014 2015 2016 2017

ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015

100 96.2 Source: SNIS - SPRIS – IN101 91.1 91.2 92.6 91.8 Municipal Services Municipal Cash Sufficiency 88.1 89.8 90.1 87.2 83.9 85.1 150% 75.2 138.4 143.8 80 133.5 131.1 128.5 126.7 128.1 124.5 127.1 116.9 114.1 114.4 117 120% 108.5 110.7 60 100.4 102 49.7 48.3 48.5 93 46.1 45.5 44.8 90% 40

60% 20

30% 0 Private Companies Private 2012 2013 2014 2015 2016 2017

0% 2012 2013 2014 2015 2016 2017 Treated Sewage Rate Related to Consumed Water [%] 100 Source: SNIS - SPRIS – IN046 In general, the operators present good balance between total income 92.2 87.5 and expenses with services. 84.4 86.9 83.7 81.7 80 Average of Investments per Water and Sewage Connection [R$/connection]

300 60

257 260 Source: SNIS - SPRIS 239.5 248.5 250 40 31.8 30.6 30.7 29.4 State Companie State 29.4 28.9

200 18.3 15.5 20 12.7 156.1 14.2 9.6 13.2 131.6 143.8 150 117.9 0 2012 2013 2014 2015 2016 2017 100 72 71.5 60.6 SNIS 2017 data demonstrate that: 93.71% of the Rio de Janeiro State 55.6 32.6 48.5 50 28.8 population relies on water supply; 50.8% of the population relies on 17.1 9.7 7.9 sewage collection services. For the sewage, 33.64% are properly treated 0 before released in water bodies. Highlighting good municipal services 2012 2013 2014 2015 2016 2017 indicator in sewage collection. Highlighting good indicators of private Highlighting the investments made by private companies in the companies in water supply and sewage collection and treatment analyzed period. services, which are almost universalized. 52 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Niterói, national reference In 1999 the sewage collection rate was only 35%. Today, 95% of the population relies on THE CITY of Niterói is a national reference in life quality and sewage collection and treatment. has one of the best sanitation services in the country. Sanita­ tion is an important part of that privileged position. Water loss volume When the private concessionaire Águas de Niterói, of the Before 1999 Today Águas do Brasil Group, took over the sanitation services in the municipality, in 1999, 72% of the population had water access. Today, 100% of the population, about 511,000 people, relies on water supply. 16% The water loss rate, which was 40% at the beginning of the concession, reached 16%, which is considered an excellent rate by international standards. With that, the concessionaire was able to supply 150,000 more people with the same amount of water. 40%

Sustainability and preservation in the Região dos Lagos

IN 1998, Prolagos began the concession of water supply and 98% of water coverage and 80% of sewage coverage. So, sewage system services in five municipalities of the Região dos more and more users have treated water in their homes Lagos District, in Rio de Janeiro State, with the commitment and all the collected sewage is treated before released into to greatly improve life qulity in Arraial do Cabo, Armação dos water bodies. Prolagos’s performance reduced 93% of hospital Búzios, Cabo Frio, São Pedro da Aldeia and Iguaba Grande, cities admissions caused by water-borne diseases, reducing 62% of facing chronic water shortage and lack of sewage treatment. SUS expenditures, besides recovering the Araruama Lagoon, which is the largest mass of hypersaline water in a permanent Prolagos has already invested R$1.4 billion, one of the largest state in the world, and bathes four municipalities assisted by investments in sanitation per inhabitant in Brazil, reaching the concessionaire 53 RIO GRANDE DO SUL

SERVICES COVERAGE LEVEL POPULATION: 11.329.605* | MUNICIPALITIES: 497 ASSISTED MUNICIPALITIES: • BY STATE COMPANY CORSAN: 315 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023

SS 52 S 263 100 99.6 99.8 100 98.7 100 98.9 100 100 97.9 97.2 98 95.4 96.3 96.5 97.8 92 93.7 93.1 • BY MUNICIPAL SERVICES: 167 SS 34 S 106 S 27 80

• BY PRIVATE COMPANIES: 2 60 SS 2

40 DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 42

*IBGE 2018 – estimated S Water supply 20 note.: Not cumulative numbers SSewage system

0 2012 2013 2014 2015 2016 2017 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS

Cash Sufficiency Source: SNIS - SPRIS – IN101 Municipal Services Municipal 150% 100 128.6 127.6 121.9 113.8 125.9 120.6 113.9 112.9 120.5 120.9 Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015 120% 106.9 80 100 97.2 93.7 88.6 84.9 61.5 90% 54.7 53.7 56.4 54.9 54.9 59.3 56.5 58.5 81.5 60 49.2 43.5 60% 40 41.7 27.5 30% 19.7 14.2 20 10.5 10.3 8.5 10 Private Companies Private 0% 2012 2013 2014 2015 2016 2017 0 2012 2013 2014 2015 2016 2017 Municipal public operators have, on average, better operating results. Highlighting the low cash sufficiency rate of private companies in 2013, 80 due to the payment of the debt service with funds calculated in the total services expense. 70 Treated Sewage Rate Related to Consumed Water [%] 60 Average of Investments per Water and Sewage Connection [R$/connection] 47.8 50 Source: SNIS - SPRIS – IN046 43.9 1200 40.6 40.7 1,095.2 39.9 40.1 40 36.2 Source: SNIS - SPRIS 31.8 1000 30 State Companie State 25.5 24.9 18.4 17.1 15.9 20 800 727 13.9 13.3 14.7 683 8.7 8.9 10 600 0 420.3 2012 2013 2014 2015 2016 2017 336.9 400.3 400 268 137.7 140.8 134.6 141.1 153.8 SNIS 2017 data demonstrate that: 97.38% of the Rio Grande do Sul State 200 111.1 122 95 75.1 79.2 86.6 population relies on water supply; 30.02% of the population relies on sewage collection services. For the sewage, 25.82% are properly treated 0 2012 2013 2014 2015 2016 2017 before released in water bodies. Highlighting the good sewage collec­ There is a significant and constant predominance of private investments tion rates of municipal services as well as sewage collection and treat­ in the State; R$610.47 per connection on average. ment rates of private companies. 54 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 In São Gabriel, tariff is reduced

São Gabriel

Rio Grande do Sul INVESTMENTS BETWEEN MEDIUM-SIZED MUNICIPALITIES: URUGUAIANA X SAPUCAIA DO SUL

Uruguaiana and Sapucaia do Sul are located in Rio Grande do by the Vacacaí River, São Gabriel city was contemplat­ BATHED Sul State. Uruguaiana, assisted by BRK Ambiental, was the first ed with the goal of universalizing the sewage system services city to grant the concession for the operation of services to a up to 2020. To achieve this goal, the concessionaire São Gabriel private company in Rio Grande do Sul. Saneamento will install 211,000 meters of pipes, 11 sewage pumping stations and one sewage treatment plant with a 13 mil­ Sapucaia do Sul is currently assisted by the State sanitation lion liters/day capacity. All this reducing the tariffs by 8% to 15%. company in Rio Grande do Sul.

Population (IBGE 2017): Investments planned by Uruguaiana – 129,784 inhabitants Solvi reach more than R$ 100 million. Sapucaia do Sul – 139,476 inhabitants Sewage treatment (SNIS 2016): *IN024

Uruguaiana – 83.75% Sapucaia do Sul – 7.37%

The length of the pipes to be installed is Annual investments in sewage system greater than the distance between (SNIS 2016) Gabriel and Porto Alegre. Uruguaiana – R$ 6,266,268.53 / year Sapucaia do Sul – R$ 4,637,842.71 / year 55 RONDÔNIA

SERVICES COVERAGE LEVEL

POPULATION: 1.757.589 | MUNICIPALITIES: 52 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023

100 ASSISTED MUNICIPALITIES: 95.4 94.9 94.9 95 94.6 92.5 • BY STATE COMPANY CAERD: 38 78.1 SS: 2 S: 36 80 • BY MUNICIPAL SERVICES: 8 SS: 2 S: 6 60 51.1 49.7 46.5 46.4 47.1 • BY PRIVATE COMPANIES: 4 (2016 contracts) 43.5 SS: 4 40

DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 3 20 6.9

*IBGE 2018 – estimated S Water supply 0 note.: Not cumulative numbers SSewage system 2012 2013 2014 2015 2016 2017

ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage50 Collection Rate [%] Sourcve: SNIS - SPRIS – IN015 42

Municipal Services Municipal Cash Sufficiency Source: SNIS - SPRIS – IN101 40 150% 35.8 36.9 33.2 31 125.1 114.7 113.2 112.5 117.8 30 120% 25.2 101.4 20 90% 73.4 74.2 69.6 67 68.2 61.3 62.9 10 60% 4.7 4.6 4.1 4.1 4.1 3.3 0.8 0 30% 2012 2013 2014 2015 2016 2017

Private Companies Private 6 0% 2012 2013 2014 2015 2016 2017 Treated50 Sewage Rate Related to Consumed Water [%]

Municipal services have a healthy balance between revenues and total Source: SNIS - SPRIS – IN046 42 expenditures with services. The state company records recurring finan­ 40 35.8 36.9 cial deficits. Private companies took over the services from 2016. 33.2 31 30 Average of Investments per Water and Sewage Connection [R$/connection] 25.2

5000 4,816.6 20 Source: SNIS - SPRIS 4000 State Companie State 10

1.6 3000 1.1 0.8 0 2012 2013 2014 2015 2016 2017

2000

SNIS 2017 data demonstrate that: 62.13% of the Rondônia State pop 1000 ulation relies on water supply; 10.12% of the population relies on sewage 502.9 443 collection services. For the sewage, 7.97% are properly treated before 42.8 24.7 36.4 10.4 21 22.9 26.5 10.3 27.1 15.2 4.7 0 released in water bodies; Municipal services have good performance in 2012 2013 2014 2015 2016 2017 the coverage of water supply; municipal sewage services present better rates than the State company. The performance of private companies in There is significant investment made by private companies in 2016. the state started in 2016, therefore, without calculated indicators. 56 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Ariquemes celebrates a new reality SINCE it took over the water treatment and distribution and the sewage system services in November 2016, the investments made by the private concessionaire Águas de Ariquemes, of the Aegea Group, have improved the sanitation in the municipality. The population, who has lived without treated Rondônia water and sewage network, today can celebrate and watch the sanitation development.

With a program of construction works and improvements to expand the sewage and water supply systems, the concessionaire have ensured services such as remodeling the Water Treatment Plant WTP – Rio Jamari, which was 20 years without repairs or Important replacement of equipment. The concessionaire has installed equipment, such modern and efficient WTP and has improved the production as the local WTP, of treated water from 16 million to 21 million liters per day. has been in service The construction works have benefited the entire municipality, 20 years without increasing the water pressure, especially in the neighborhoods maintenance. Jardim Jorge Teixeira, Jardim Paraná, União III, sectors 8, 9 and The private 11, where there is currently no water shortage. concessionaire has renovated and An investment of approximately R$3.5 million in equipment, Ariquemes modernized the urbanization and infrastructure will enable the modernization Buritis equipment. of the water supply system, which was not designed to meet the continuous growth of the city. In total, the investment will be about R$10 million in construction, expansion and improve­ ments to the sanitary sewage system, benefiting, in an initial phase, 11,500 families.

Buritis celebrates 100%

the arrival of water 50% 2020 THE CITY is a good example of improvements in life quality and health from investments made by private concessionaire in Rondônia State. 0% 4 anos atrás Four years ago, Buritis had no sanitation – neither treated water nor sewage collection and treatment. Today, the private conces­ sionaire Águas de Buritis, of the Aegea Group, attends 33% of In five years, Buritis will the population and aims to achieve, in 2020, a 50% water cover­ reach 50% coverage. age rate, as well as sewage collection and treatment. 57 SANTA CATARINA

SERVICES COVERAGE LEVEL

POPULATION: 7.075.494 | MUNICIPALITIES: 295 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: 100 98.3 97.9 97.7 98 97.8 100 94.9 95.8 96.7 95.7 95.5 96.2 • BY STATE COMPANY CASAN: 196 95.2 92 93.4 95.3 SS: 15 S: 181 79.9 80.3 80 • BY MUNICIPAL SERVICES: 93 SS: 27 S: 51 S: 15 60 • BY PRIVATE COMPANIES: 11

SS: 10 S: 1 40 DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 11 20

*IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system 0 2012 2013 2014 2015 2016 2017

ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%]

Cash Sufficiency Source: SNIS - SPRIS – IN101 60 Municipal Services Municipal Source: SNIS - SPRIS – IN015 51.4 200% 46.5 46.3 50 45.6 43.9 156.7 38.7 140.3 143.3 144.1 40 150% 137.6 131.5 135.4 34.6 34.8 128.4 122.5 120.1 118.3 27.4 29.4 118 30 104.2 102.3 24.9 98..8 97.9 93.2 22.5 22.1 23.2 100% 20.3 83.1 16.8 17.3 19.8 20

50% 10

Private Companies Private 0 2012 2013 2014 2015 2016 2017 0% 2012 2013 2014 2015 2016 2017

In general, the private operators and municipal services present reasonable Treated Sewage Rate Related to Consumed Water [%] balance between total incomes and expenditures with services. The same does not occur with the State company, which records deficits from 2014. 60 Source: SNIS - SPRIS – IN046 51.4 46.5 46.3 50 Average of Investments per Water and Sewage Connection [R$/connection] 45.6 43.9 38.7 3000 40 2,763.1 Source: SNIS - SPRIS 32.3 32.6 27 28.3 2500 30

State Companie State 23.9 23.2 22.1 21.7 19.7 20.3 16.7 17.1 2000 20

1500 10

1,025.8 1000 0 2012 2013 2014 2015 2016 2017 636.3 681.2 617.9 494.8 361.7 SNIS 2017 data demonstrate that: 97.19% of the Santa Catarina State 500 279 281.8 169.6 220.9 population relies on water supply; 28.0% of the population relies on 136.7 144.5 123.3 106.8 133 156.2 924 sewage collection services. For the sewage, 28.01% are properly treated 0 2012 2013 2014 2015 2016 2017 before released in water bodies. Highlighting the best sewage collection and treatment indicators of private companies throughout the analysis Most of the investments were made by private companies. period. 58 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Bombinhas is present

THE CONCESSIONAIRE Águas de Bombinhas, of the Angea Group, began its operations in the city of Bombinhas a few years ago and has already changed the city’s history. Thanks to the investment of R$ 55 million, today the city is self-reliant in water resources, increasing in five times its water production capacity comparing to the last years.

This was possible thanks to the construction of a modern water treatment plant, expected to be completed in the fifth year of Santa Catarina the contract, but delivered in advance after only two years.

From now on, the water intake in the Tijucas River supplies Bombinhas, and the water runs through 27 kilometers of pipelines. During the construction process, the company has worked together with the community, changing its path to accept requests from the population. With this commitment, Bombinhas will have water production for the whole year, for Blumenau both the winter and the high season, contributing to its tourist Bombinhas and economic development.

Blumenau, major breakthrough

NINE YEARS AGO the concession of sewage collection and treatment services operations of the municipality were grant­ ed to the private initiative, through the concessionaire BRK Ambiental Blumenau. The city can be considered the most advanced in terms of sanitation in the Santa Catarina State.

Since the work began, the coverage rates rose from 4.8% to 43%, attending 153,000 people and 19 of the 35 neighborhoods of the city. So far, R$242 million have been invested and the forecast is A daily sewage volume equivalent to seven $505 million by 2055, when the concession contract terminates. Olympic swimming pools is no longer polluting the Itajaí-Açu River and the small Every day, 19 million liters of sewage are treated before released streams of the region. into water bodies, with analyzed quality. 59 SÃO PAULO

SERVICES COVERAGE LEVEL

POPULATION: 45.538.936* | MUNICIPALITIES: 645 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 99.9 99.3 99.7 98.7 99.6 98.8 99 99.2 99.6 99.3 99.9 99.5 ASSISTED MUNICIPALITIES: 100 98.3 98.3 98.4 97.7 97.8 98 • BY STATE COMPANY SABESP: 367 SS: 366 S: 1 80 • BY MUNICIPAL SERVICES: 288

SS: 225 S: 2 : 1 60 • BY PRIVATE COMPANIES: 51 SS: 21 : 20 S: 10 40

DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION:29 20

*IBGE 2018 – estimated S Water supply Water production S 0 note.: Not cumulative numbers Sewage system Sewage collection 2012 2013 2014 2015 2016 2017

ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015 100 98 97.3 97.5 96.3 Municipal Services Municipal 89.9 90.4 85.2 87.1 Cash Sufficiency Source: SNIS - SPRIS – IN101 84.4 83 84.3 80.5 78.1 150% 74.7 75.3 138.1 80 69.8 68.8 71.4 125.2 128 122.6 122.8 120.8 125.7 123.3 116.2 115.6 113.2 116.6 116.2 110.7 116.8 120% 60 107.2 110.6

91.7 90% 40

60% 20

Private Companies Private 30% 0 2012 2013 2014 2015 2016 2017

0% Treated Sewage Rate Related to Consumed Water [%] 2012 2013 2014 2015 2016 2017 All the operators - public and private - present reasonable balance be­ 100 Source: SNIS - SPRIS – IN046 tween total incomes and expenditures with services. 84.8 84.6 80 81.2 74.5 78.4 80 Average of Investments per Water and Sewage Connection [R$/connection] 65.8 61.6 63 60.6 61.2 55.2 54.3 57 59.5 300 60 274.2 Source: SNIS - SPRIS 51.8 51.2 50.9 259.4 252.2 238.1 234.9 250 221.1 40 210.5 State Companie State 196.4 204.3 200 20

150

105.5 0 96.5 2012 2013 2014 2015 2016 2017 100 74.3 62 65.4 54.5 59.5 50.6 40.3 50 SNIS 2017 data demonstrate that: 98.6% of the São Paulo State popula­ tion relies on water supply; 82.18% of the population relies on sewage 0 2012 2013 2014 2015 2016 2017 collection services. For the sewage, 64.56% are properly treated before released in water bodies. It is highlighted that nine municipalities, with Most investments were made by the State company from 2014, and by private participation just in sewage collection and treatment, have private companies from 2012 to 2014. reached treatment rates close to the universalization. 60 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 SÃO PAULO, one step ahead

Ribeirão Preto Araçatuba Santa Rita Casa Branca do Passa Quatro

Mogi Mirim

ARAÇATUBA

THE COMPANY SAMAR - Soluções Ambientais de Araçatuba, has Among the benefits generated by the works are the guarantee completed and delivered four large construction works in 2018, of sewage treatment and installation of new industries in the ensuring the universalization of water supply and sewage system industrial parks of the Northern Zone; The economy heating services in Araçatuba City, with total investment of R$28 million. up and the appropriate treatment for the installation of new industries have generated new direct and indirect jobs; in ad­ At the beginning of November, 2018, after completing six years dition to recovering the old treatment ponds and consequent of concession, SAMAR concluded one of the largest sanitation improvement of the environment. investments ever made in the city: the flow reversal of the sew­ age basin of the treatment lagoons Maria Isabel, responsible It was also concluded the relocation and installation con­ to treat 15% of the collected sewage in the municipality. The struction works of 2.5 kilometers of outflow sewage systems sewage collected in this region is now directed to the Sewage on the banks of the Baguaçu Stream, the main watershed for Treatment Plant STP Baguaçu, which was renovated and mod­ water supply in Araçatuba. SAMAR has also built 30 new man ernized. The construction work enabled the installation of new holes. Problems that required constant maintenance were industries in the industrial parks of the northern zone, gener­ finally resolved. ating jobs and heating up the local economy. 61 Sectorization Investments SAMAR has concluded the first of three stages of the sectoriza­ In 2019, SAMAR will invest in the modernization of water supply tion construction work for water distribution in Araçatuba. The and sewage collection and treatment systems. A new Water works began in April, 2018, and 40 kilometers of new water net­ Treatment Plant (WTP Baguaçu 4) will be built, with capacity works will be installed, as well as sluice valves. The sectorization to produce 1,000 m³ of drinking water and supply 60% of the will be completed in 2020, dividing the city into 42 microssectors, city. The thermal drying system of sewage sludge generated which will provide an efficient supply management, in addition by the STP Baguaçu is been installed. The system uses unique to reducing the losses in the system. technology to drastically reduce the volume of waste generated in the sewage treatment process. In April, SAMAR began operating Expansion of the Tietê River supply the GS Water, a technology developed in South Korea, which will With the expansion of the Tietê supply system (WTP Tietê), 3,000 assist the management of the Araçatuba’s supply system in real- residents of the rural district Engenheiro Taveira were connected time. The GS Water use will reduce the water loss rate from 37% to the drinking water supply network. The installation of more to 25% (up to 2042). The completion of the water distribution than six kilometers of pipeline networks allowed the municipal­ system sectorization in the municipality will also allow more ity to develop real estate projects, which provides for the con­ efficient management of services. The total investment will be struction of 3.5 thousand new real states in the coming years. R$40 million.

THE SANITATION FIGURES IN ARAÇATUBA

100% 99% 100% SEWAGE 716 KM 675 KM OF 79,000 WATER SEWAGE TREATMENT AND OF WATER SEWAGE NET- ACTIVE TREATMENT COLLECTION COLLECTION NETWORK WORK CONNECTIONS

62 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

MIRASSOL MOGI MIRIM

With the inauguration of a new sewage treatment plant, SESAMM – Sanitation Services in Mogi Mirim, of the GS Inima completed in 2018, the concessionaire Sanessol, of the hol Brasil Group, is the first Brazilian sanitation company to invest dings Aviva Ambiental and Iguá, reached the universaliza­ in solar energy, through photovoltaic panels, and thus comple­ tion of sewage treatment services in Mirassol, a munici­ ment the energy consumption of its Sewage Treatment Plant pality with 60,000 inhabitants, in the inside of São Paulo. (STP). The power plant consists of 1,066 modules, with a pow­ The city is one of the best in the ABES Universalization of er of 402.375 kWp to provide clean energy. The investment was Sanitation Ranking. R$1.7 million. The solar power plant will produce 30% of the energy needed for the STP operation.

SANTA RITA DO PASSA QUATRO CASA BRANCA

One of the biggest challenges of the company COMASA, of the The concessionaires overcome various obstacles, often antici­ GS Inima Brasil Group, was to reduce the electricity consump­ pating the contracted goals. A recent example has occurred in tion in the operations. In just over two years of operation, many Casa Branca, in the inside of São Paulo State. In February 2018, actions were carried out. Automation, repair and improvement the concessionaire Águas de Casa Branca (Perenge/Terracom) actions in the use of water pumps to water intake, as well as began the operation in the city, recovering immediately the in the Water Treatment Station, which reduced from 34% to Water Treatment Plant “1”, replacing the filter materials and 25% the total cost of the operation. When COMASA began op­ removing leaks of raw water pipeline that connects the Sítio erate, the water loss rate (physical and commercial) was 61%. das Covas Farm to the station. In the first year of the conces­ After several technical measures (pressure control and 73% of sion, the company performed the maintenance of the Sewage geophone control in the network, reactivation of reservoirs, Treatment Plant (São Francisco Farm) with agility and commit­ renewal of 60% of the hydrometers park, among others), the ment to CETESB/GAEMA. Also, the company surpassed itself and rate fell to 26%. This case obtained national recognition in 2017 aims to finish the construction of the STP in the Venda Bran­ and won the second place in the technical category of the Sus­ ca district - which was planned for 2029 - anticipating in ten tainability Award of Sindcon. years the contractual forecast. With all the actions in progress, the municipality headquarter already has water and sewage services universalized.

63 TOCANTINS

SERVICES COVERAGE LEVEL

POPULATION: 1.555,229* | MUNICIPALITIES: 139 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023

ASSISTED MUNICIPALITIES: 99.2 98.4 98.6 99 100 99.2 100 96 97.7 97.3 96.7 97.6 92 • BY STATE COMPANY: 77 88.8 85.8 87 85.9 S: 77 82.5 80 • BY MUNICIPAL SERVICES: 3 SS: 1 S: 2 60 • BY PRIVATE COMPANIES: 53 SS: 14 S: 39 40 DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 6 20

IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system 0 2012 2013 2014 2015 2016 2017

ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS 500% Sewage Collection Rate [%]

Municipal Services Municipal 35 32 Cash400% Sufficiency Source: SNIS - SPRIS – IN101 Source: SNIS - SPRIS – IN015 30

282.4 282 23.9 24.7 300% 25

19.1 19.8 167.6 183.7 20 200% 16.8 153.2 139.8 132.7 14.5 112.9 85.6 109.8 15 110.4 71 82.8 85.5 76.7 79.2 100% 11.2 70.2 9.5 10 7.5 6.6 5.6 0% 5 2012 2013 2014 2015 2016 2017 Empresas Privadas Empresas 0 From 2014, the State company presented excellent balance between total 2012 2013 2014 2015 2016 2017 revenues and expenditures with services. The private company presented decline in 2015 and 2016, recovering the balance between total revenues and expenditures with services in 2017. The municipal services presented Treated Sewage Rate Related to Consumed Water [%] financial deficit between 2013 and 2016. 35 32 Source: SNIS - SPRIS – IN046 Average of Investments per Water and Sewage Connection [R$/connection] 30 23.9 24 500 25 444.7 18.2 19.8 Source: SNIS - SPRIS 20 400 14.5

State company State 14 15 293.8 300 10 218.7 228.3 6.8 5.4 5 168.9 4 200 5 163.4 1.8

0 100 2012 2013 2014 2015 2016 2017

0.8 4.6 3 2.9 0.4 SNIS 2017 data demonstrate that: 98.03% of the Tocantins State pop 0 ulation relies on water supply; 30.97% of the population relies on sewage 2012 2013 2014 2015 2016 2017 collection services. For the sewage, 30.81% are properly treated before Most of the investments were made by the private company throughout released in water bodies. There is no record of the State company’s the analysis period.. sanitation indicators. 64 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019 Tocantins with life quality

MORE THAN investing in the improvement of management There are 210 water intake points throughout the State, divided and technologies for treatment and distribution of water to the into 29 Water Treatment Plants (WTP) and 181 Deep Tube Wells people of Tocantins, the BRK Ambiental promotes life quality, (DTW) which together produce 7.2 million m³ of water per month, bringing health and environmental education to its clients. in more than 7,000 kilometers of network. In addition, reservoirs Thus, 47 municipalities are assisted by the concessionaire with and pumping stations remain under operational control water supply and sewage services, being 7,000 kilometers of throughout the year. These factors guarantee the water supply network only to ensure quality water supply. for the population.

Currently, 100% of the municipalities assisted by BRK Ambiental have treated water – equivalent to 80% of the population of In Palmas, 100% of the collected sewage is Tocantins. The system has 350,000 water connections. Today, treated before being released to water bodies, 90% of the inhabitants of Palmas, the capital of Tocantins, being the first capital of northern Brazil to have sewage services, which mean the services universalization. universalize the sewage services.

TREATED WATER for 80% of the population

NATURE WATER SUPPLY preserved 350,000 water connections

TREATMENT SEWAGE COLLECTION 100% of sewage collection 90% of sewage collection in Palmas

65 66 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

STATES WITHOUT PRIVATE SECTOR INVESTMENT IN SANITATION

67 ACRE

SERVICES COVERAGE LEVEL

Source: SNIS - SPRIS – IN023 POPULATION: 869.265* | MUNICIPALITIES: 22 Urban Water Assistance Rate [%] ASSISTED MUNICIPALITIES: 100 • BY STATE COMPANY DEPASA: 22 82.9 SS: 1 S: 21 80

64.2 65.5 65.4 57.4 59.5 THERE IS NO PARTICIPATION OF MUNICIPAL SERVICES IN THE 60 STATE 40 THERE IS NO PARTICIPATION OF THE PRIVATE SECTOR IN THE STATE 20 IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system 0 2012 2013 2014 2015 2016 2017

ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015

19.8 19.4 20 18.9 17.6 18.2 Cash Sufficiency Source: SNIS - SPRIS – IN101 16.9 60% 57.5 15 52.1 50.2 50.2 50% 46.8

10 40% 37.1

30% 5

20%

0 10% 2012 2013 2014 2015 2016 2017

0% 2012 2013 2014 2015 2016 2017 Treated Sewage Rate Related to Consumed Water [%] Source: SNIS - SPRIS – IN046 The State company presented permanent operational deficits through 19.8 the analysis period. 20 19.4 18.9 17.6 18.2 16.9

Average of Investments per Water and Sewage Connection [R$/connection] 15

15 14.3

Source: SNIS - SPRIS 10 12 12 State company State

9 5

6 0 2012 2013 2014 2015 2016 2017

3 1.3 1.3 SNIS 2017 data demonstrate that: 65.41% of the Acre State population 0.3 0.1 relies on water supply; 18.98% of the population relies on sewage 0 2012 2013 2014 2015 2016 2017 collection services; For the sewage, 18.98% are properly treated before released in water bodies; In the analysis period, both rates remained Absolute lack of investment was observed through the analysis period. virtually unchanged. 68 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATIONAMAPÁ IN SANITATION 2019

SERVICES COVERAGE LEVEL

POPULATION: 829.494* | MUNICIPALITIES: 16 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: • BY STATE COMPANY CAESA: 16 50 SS: 6 S: 10 40.3 40.4 40 39 38.4 THERE IS NO PARTICIPATION OF MUNICIPAL SERVICES IN 37.4 37.1 THE STATE 30 THERE IS NO PARTICIPATION OF THE PRIVATE SECTOR IN THE STATE 20

IBGE 2018 – estimated S Water supply 10 note.: Not cumulative numbers SSewage system

0 2012 2013 2014 2015 2016 2017 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS

Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015 Cash Sufficiency Source: SNIS - SPRIS – IN101 15 14.1 13.8 59 60% 13 56 12.9 12 50% 47.5 46.6 47

9 40% 6.6 6 30% 6

20% 3 13.1 10% 0 2012 2013 2014 2015 2016 2017 0% 2012 2013 2014 2015 2016 2017

The State company presented deficits between revenues and total expenditures with services, getting worse in 2017. Treated Sewage Rate Related to Consumed Water [%] 15 Source: SNIS - SPRIS – IN046 13.2 13 Average of Investments per Water and Sewage Connection [R$/connection] 12.2

12 State company 12 30 29.1 Source: SNIS - SPRIS

9 25 24.3

5.7 20 6 5.6

15 3 11.6 10 0 2012 2013 2014 2015 2016 2017 5 4.4

0 0 SNIS 2017 data demonstrate that: 38.46% of the Amapá State population 0 2012 2013 2014 2015 2016 2017 relies on water supply; 12.91% of the population relies on sewage collection services. For the sewage, 12.04% are properly treated before The State Company presents unimpressive investments. released in water bodies. 69 CEARÁ

SERVICES COVERAGE LEVEL

POPULATION: 9.075.649* | MUNICIPALITIES: 184 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: 97.2 96.3 97 96.9 • BY STATE COMPANY CAGECE: 152 100 95.2 95.5 SS S : 74 : 78 83.5 84.8 80 76.2 • BY MUNICIPAL SERVICES: 34 76.4 76.4 74.9 SS: 12 S: 14 : 8 60 THERE IS NO PARTICIPATION OF THE PRIVATE SECTOR IN THE STATE. 40

DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 8 20 IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system Sewage collection 0 2012 2013 2014 2015 2016 2017

ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015 Cash Sufficiency Source: SNIS - SPRIS – IN101 40 39.5 150% 37.9 36.9 37.6 37.7 135.6 35.6 35 33.8 127.7 125.8 117.7 31 30.7 30.6 120% 113 115.3 113.2 30 107.3 28 102.3 106.2 104.8 25 24.4 90% 88 20

60% 15

10 30%

Municipal Services Municipal 5

0% 0 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017

Total lack of municipal services investment. Highlighting the State company investments, although little expressive. Treated Sewage Rate Related to Consumed Water [%] 40 39.3 Source: SNIS - SPRIS – IN046 36.9 37.6 37.7 Average of Investments per Water and Sewage Connection [R$/connection] 35.6 35 33.8 Source: SNIS - SPRIS 120 118,1 106 30 99,2 26.1 25.7 100 99 25 23.6

State company State 81,2 19.7 20 19.3 80 17.6 68,8 15 60 10 40 5

20 0 12,9 2012 2013 2014 2015 2016 2017 7,8 10,6 8,6 5,9 4 0 SNIS 2017 data demonstrate that: 79.83% of the Ceará State population 2012 2013 2014 2015 2016 2017 relies on water supply; 38.16% of the population relies on sewage The operators present reasonable balance between total income and collection services. For the sewage, 37.26% are properly treated before expenditure with services. released in water bodies. 70 DISTRITOPANORAMA OF THE PRIVATE SECTOR’S FEDERAL PARTICIPATION IN SANITATION 2019

SERVICES COVERAGE LEVEL

POPULATION: 2.974.703* | MUNICIPALITIES: 1 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: 98.9 99 98.7 • BY STATE COMPANY CAESB: 1 100 98 98.2 97.4 SS: 1 THERE IS NO PARTICIPATION OF THE PRIVATE SECTOR IN DF. 80

IBGE 2018 – estimated S Water supply 60 note.: Not cumulative numbers SSewage system

40

20 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS

0 2012 2013 2014 2015 2016 2017 Cash Sufficiency Source: SNIS - SPRIS – IN101 120% Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015 100.4 100.9 100.2 100.1 82.1 84.4 84.4 96.2 97.2 100% 80 70.6 66.4 66.1 80% 60

60% 40 40%

20 20%

0% 0 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017

Low operating result during the analysis period, presenting deficit in 2012 and 2014. Treated Sewage Rate Related to Consumed Water [%] 100 Source: SNIS - SPRIS – IN046

Average of Investments per Water and Sewage Connection [R$/connection] 82.1 84.4 84.4 Source: SNIS - SPRIS 80 70.6 66.4 66.1 State company 264.5 60 250

200 40

155.7 142.5 149 150 20 116.2 112.9 100 0 2012 2013 2014 2015 2016 2017 50 SNIS 2017 data demonstrate that: 98.71% of the Distrito Federal State 0 population relies on water supply; 84.42% of the population relies on 2012 2013 2014 2015 2016 2017 sewage collection services. For the sewage, 84.42% are properly treated before released in water bodies. Distrito Federal has reached the water The numbers reveal ongoing investments, despite the low operating supply universalization, and heads towards the universalization of results of the company. sanitation. 71 PARAÍBA

SERVICES COVERAGE LEVEL

Urban Water Assistance Rate [%] POPULATION: 3.996.496* | MUNICIPALITIES: 223 Source: SNIS - SPRIS – IN023 100 96.8 ASSISTED MUNICIPALITIES: 92.6 93.7 92.1 89.1 91.5 • BY STATE COMPANY CAGEPA: 195 84 85.7 81.9 79.6 76.6 78.7 SS: 22 S: 173 80 • BY MUNICIPAL SERVICES: 54 SS: 6 S: 7 : 41 60 THERE IS NO PARTICIPATION OF THE PRIVATE SECTOR IN THE STATE 40 DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 16 20

IBGE 2018 – estimated S Water supply 0 note.: Not cumulative numbers SSewage system Sewage collection 2012 2013 2014 2015 2016 2017

ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%]

79,8 79,1 80 77 Cash Sufficiency Source: SNIS - SPRIS – IN101 Source: SNIS - SPRIS – IN015 70 150% 56 60 131 60 55,1 53,2 120% 45,6 48,4 109.9 50 102 98.7 40,4 90.5 35,9 38,9 84.6 40 90% 79.2 30

60% 20

34.7 32.1 34.3 10 30% 16.8 19.8

Municipal Services Municipal 0 2012 2013 2014 2015 2016 2017 0% 2012 2013 2014 2015 2016 2017 Treated Sewage Rate Related to Consumed Water [%] There is no evidence of good operational results of the State company, while the municipal services present recurring deficits. 50 Source: SNIS - SPRIS – IN046 47.4 47.9 44.9

39.7 38.4 40 Average of Investments per Water and Sewage Connection [R$/connection] 35.1

100 Source: SNIS - SPRIS 30 82.4 75.6 80 State company State 20

60 9.3 49.3 10 6.7 41.5 3.3 3.3 40 2 2.5 28.3 0 2012 2013 2014 2015 2016 2017 19.3 20 9.4 4 3.4 3.3 SNIS 2017 data demonstrate that: 91.78% of the Paraíba State population 0.1 0.3 0 relies on water supply; 39.21% of the population relies on sewage 2012 2013 2014 2015 2016 2017 collection services. For the sewage, 38.10% are properly treated before released in water bodies. Highlighting better sewage collection rates, but Very low investment observed in the analysis period low rates of sewage treatment in municipal services. 72 RIO GRANDEPANORAMA OF THE PRIVATE SECTOR’S DO PARTICIPATION NORTE IN SANITATION 2019

SERVICES COVERAGE LEVEL

POPULATION: 3.479.010* | MUNICIPALITIES: 167 Urban Water Assistance Rate [%] ASSISTED MUNICIPALITIES: Source: SNIS - SPRIS – IN023 99.1 99.1 98.9 99.1 100 95.1 94.5 94.7 96.6 95.5 95.7 • BY STATE COMPANY CAERN: 157 91.6 SS: 43 S: 114 87.6 80 • BY MUNICIPAL SERVICES: 18 SS: 5 S: 2 S: 11 60 DID NOT RESPOND TO THE SNIS 2017 DATA COLLECTION: 4

THERE IS NO PARTICIPATION OF THE PRIVATE SECTOR IN 40 THE STATE 20

IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system 0 2012 2013 2014 2015 2016 2017

ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015 48,9 50 Cash Sufficiency Source: SNIS - SPRIS – IN101 43 150% 40 127.3 129.9 133.1 131 132.8 37 128.4 34,4 114.6 121.3 115 120% 31,1 30,3 28 103 107.2 102.2 30

25,7 State company 23,5 23,9 23,3 24,7 90% 20

60% 10

30% 0 2012 2013 2014 2015 2016 2017 0% 2012 2013 2014 2015 2016 2017 The municipal services have presented best operating results when Treated Sewage Rate Related to Consumed Water [%] compared with the State company in the analysis period. 50 Source: SNIS - SPRIS – IN046 48.2 Municipal Services 42.4 Average of Investments per Water and Sewage Connection [R$/connection] 40 36 200 Source: SNIS - SPRIS 32.5 178.4 30.3 28.8 28 159.8 30 150.6 149.1 150 136.1 19.7 20 19.6 20.8 21.5 20

100 10

41.9 50 0 2012 2013 2014 2015 2016 2017 25.1 9.4 10.6 3.7 1 2.4 0 SNIS 2017 data demonstrate that: 91.13% of the Rio Grande do Norte 2012 2013 2014 2015 2016 2017 State population relies on water supply; 29.78% of the population relies on sewage collection services. For the sewage, 29.71% are properly Despite the negligible operating results, the figures reveal ongoing treated before released in water bodies The municipal services present investments by the State company. better indicators both in water supply and sewage system. 73 RORAIMA

SERVICES COVERAGE LEVEL

POPULATION: 576.568* | MUNICIPALITIES: 15 Urban Water Assistance Rate [%] Source: SNIS - SPRIS – IN023 ASSISTED MUNICIPALITIES: 99.61 99.36 98.92 98.92 99.69 99.69 • BY STATE COMPANY CAER: 15 100 SS: 1 S: 14 80

60 THERE IS NO PARTICIPATION OF MUNICIPAL SERVICES IN THE STATE 40 THERE IS NO PARTICIPATION OF THE PRIVATE SECTOR IN THE STATE 20

IBGE 2018 – estimated S Water supply ot ers SSewage system note.: N cumulative numb 0 2012 2013 2014 2015 2016 2017 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%] Source: SNIS - SPRIS – IN015 Cash Sufficiency Source: SNIS - SPRIS – IN101 80 72.8 100% 70 63.6 84.3 57.7 80.1 78 80 79.3 60 80% 50 44.5 39.6 60% 54.8 40 31.2 30 40% 20

20% 10

0 0% 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 The State company presented permanent operating deficit during the analysis period. Treated Sewage Rate Related to Consumed Water [%] 80 Source: SNIS - SPRIS – IN046 72.8 Average of Investments per Water and Sewage Connection [R$/connection] 70 50 57.1 Source: SNIS - SPRIS 60 43 54.3 50 40 44.5 36.8 39.6

State company State 40 31.2 30 25.4 30

19.1 20.1 20 20 17.6 10

10 0 2012 2013 2014 2015 2016 2017

0 2012 2013 2014 2015 2016 2017 SNIS 2017 data demonstrate that: 99.69% of the Roraima State population relies on water supply; 72.88% of the population (majority in the capital Despite the negligible operating results, the figures reveal ongoing of the State) relies on sewage collection services. For the sewage, 72.88% investments by the State company.. are properly treated before released in water bodies. 74 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATIONSERGIPE IN SANITATION 2019

SERVICES COVERAGE LEVEL

POPULATION: 2.278.308* | MUNICIPALITIES: 75 Urban Water Assistance Rate [%] ASSISTED MUNICIPALITIES: Source: SNIS - SPRIS – IN023 • BY STATE COMPANY DESO: 73 100 98.7 96.3 97.3 SS S 89.4 89.6 89.8 90 90.1 89.4 : 6 : 67 83.2 • BY MUNICIPAL SERVICES: 10 80 67.8 SS: 1 S: 3 S: 6 64 60 THERE IS NO PARTICIPATION OF THE PRIVATE SECTOR IN THE STATE 40

20 IBGE 2018 – estimated S Water supply note.: Not cumulative numbers SSewage system 0 2012 2013 2014 2015 2016 2017 ECONOMIC AND FINANCIAL SITUATION OF THE OPERATORS Sewage Collection Rate [%] Source: SNIS - SPRIS – IN101 Cash Sufficiency 35 Source: SNIS - SPRIS – IN015 31.6 120% 113.7 29.9 30 99.8 97.6 97.5 96 100.9 100% 94.5 23.7 25.4 92.6 94.8 93.6 93.3 25 89.6 22.28 22.99

80% 20 State company

60% 15

40% 10 4 5 2.2 20% 0.77 0.88 0.7 0.7 0 0% 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 The State company presented operational deficits throughout the analysis period. Treated Sewage Rate Related to Consumed Water [%]

35 Source: SNIS - SPRIS – IN046 Municipal Services Average of Investments per Water and Sewage Connection [R$/connection] 31,6 29.9 30 250 Source: SNIS - SPRIS 25.4 221.2 25 23.76 209.3 22 22.9 200 177.7 20 171.7 140.5 15 150

112.2 10 100 5 4.0 0.7 0.8 0.7 0.7 2.2 50 0 27.2 2012 2013 2014 2015 2016 2017 9.2 8.9 8.9 5.3 2.5 0 2012 2013 2014 2015 2016 2017 SNIS 2017 data demonstrate that: 96.57% of the Sergipe State population relies on water supply; 29.08% of the population relies on sewage Despite the low financial balance, the figures reveal investments by collection services. For the sewage, 29.08% are properly treated before the State company in the analysis period. released in water bodies. 75 76 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

04 PRIVATE CONCESSIONS FRAMEWORK

77 INVESTMENT (R$ MILLION) ASSISTED MAJORITY CONCESSIONAIRE Total MUNICIPALITIES SHAREHOLDER DATE TOTAL TOTAL

MODEL Materialized Contract CONTRACT CONTRACT CONTRACT BENEFITED BENEFITED in 2017

POPULATION Commitment TERM (YEARS) TERM

ALAGOAS

Arapiraca Campo Grande Coité do Noia Craíbas do Nunes

Feira Grande Completed Agreste Saneamento Iguá Saneamento PPP Water 2012 30 279,026 261.79 Girau do Ponciano investments Igaci Lagoa da Canoa Olho D’água Grande São Brás SANAMA – Saneamento Maceió GS Inima Brasil PPP Sewage 2014 30 270,000 168.50 0.83 Alta Maceió

11 2 549,026 430.29 0.83

AMAZONAS

Aegea Saneamento Manaus Águas de Manaus Full Concession 2000 45 2,207,525 2.976,68 72.95 e Participações

1 1 2,207,525 2.976,68 72.95

BAHIA

Lauro de Freitas BRK Ambiental Completed BRK Ambiental PPP Sewage 2006 15 1,100,000 261.13 Salvador Jaguaribe investments

2 1 1,100,000 261.13 -

ESPÍRITO SANTO

Cachoeiro BRK Ambiental Cachoeiro BRK Ambiental Full Concession 1998 50 207,396 326.03 6.91 de Itapemirim de Itapemirim Aegea Saneamento Serra Serra Ambiental PPP Sewage 2014 30 326,156 576.70 42.70 e Participações Aegea Saneamento Vila Velha Águas de Vila Velha PPP Sewage 2017 30 174,250 684.00 0.89 e Participações 3 3 707,802 1,586.73 50.49

78 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

INVESTMENT (R$ MILLION) ASSISTED MAJORITY CONCESSIONAIRE Total MUNICIPALITIES SHAREHOLDER DATE TOTAL TOTAL

MODEL Materialized Contract CONTRACT CONTRACT CONTRACT BENEFITED BENEFITED in 2017

POPULATION Commitment TERM (YEARS) TERM

GOIÁS

Aparecida de Goiania

Jataí Sewage BRK Ambiental Goiás BRK Ambiental 2013 30 923,904 951.01 109.38 Rio Verde Subdelegation Trindade 4 1 923,904 951.01 109.38

MARANHÃO

Aegea Saneamento Timon Águas de Timon Full Concession 2015 30 145,702 207.00 70.23 e Participações

São José de Ribamar BRK Ambiental BRK Ambiental Full Concession 2015 35 175,107 450.00 33.60 Paço do Lumiar Maranhão 3 2 320,809 657.00 103.83

MATO GROSSO

Alta Floresta Águas Alta Floresta Iguá Saneamento Full Concession 2002 30 43,693 47,28 0.97 Nascimento Partial Concession Arenápolis Águas de Arenápolis 2001 30 9,455 n.d. 0.07 Engenharia Water Águas de Barra Aegea Saneamento Barra do Garças Full Concession 2003 30 60,661 59.24 4.66 do Garças e Participações Aegea Saneamento Campo Verde Águas de Campo Verde Full Concession 2001 30 36,561 33.96 7.15 e Participações Partial Concession Canarana Águas Canarana Iguá Saneamento 2000 40 17,770 34.43 1.23 Water Aegea Saneamento Partial Concession Carlinda Águas de Carlinda 2004 30 5,970 7.37 0.02 e Participações Water Aegea Saneamento Cláudia Águas de Claudia Full Concession 2004 30 8,848 14.36 0.41 e Participações Colider Águas Colider Iguá Saneamento Full Concession 2002 30 26.484 38.15 0.92 Partial Concession Comodoro Águas Comodoro Iguá Saneamento 2007 30 13.868 7.21 0.48 Water Aegea Saneamento Confresa Águas de Confresa Full Concession 2014 30 12,897 105.74 2.19 e Participações

79 INVESTMENT

(R$ MILLION) ASSISTED MAJORITY CONCESSIONAIRE Total MUNICIPALITIES SHAREHOLDER DATE TOTAL

MODEL Materialized Contract CONTRACT CONTRACT BENEFITED in 2017

POPULATION Commitment TERM (YEARS) TERM

Cuiabá Águas Cuiabá Iguá Saneamento Full Concession 2012 30 620,832 1,564.55 42.29 Aegea Saneamento Diamantino Águas de Diamantino Full Concession 2014 30 18,701 49.12 2.25 e Participações Aegea Saneamento Guarantã do Norte Águas de Guarantã Ltda. Full Concession 2001 30 25,739 40.64 0.54 e Participações Aegea Saneamento Jangada Águas de Jangada Full Concession 2004 30 4,846 5.85 0.07 e Participações Aegea Saneamento Jauru Águas de Jauru Full Concession 2012 30 6,924 21.60 0.48 e Participações Juara Concessionaire Águas de Juara Pereira Campanha Full Concession 2001 30 28.840 8.00 1.02 Aegea Saneamento Marcelândia Águas de Marcelândia Full Concession 2003 30 9.485 31.20 0.13 e Participações Aegea Saneamento Matupá Águas de Matupá Full Concession 2001 30 14,902 29.29 0.42 e Participações Empresa de Saneamento Nobres Encomind Engenharia Full Concession 1999 30 12,600 2.60 n.d. de Nobres Aegea Saneamento Partial Concession Nortelândia Águas de Nortelândia 2002 50 5,809 2.39 0.03 e Participações Water Partial Concession Nova Canaã do Norte Águas de Canaã Construtora Premier 1905 30 12,388 15.88 0.48 Water Setae - Serviço de Tratamento Setae - Serviço de Tratamen- Nova Xavantina de Água e Esgoto - Nova Full Concession 2001 30 16,544 n.d. 0.59 to de Água e Esgoto Xavantina Setae - Serviço de Tratamento Setae - Serviço de Tratamen- Partial Concession Completed Novo São Joaquim de Água e Esgoto - Novo 2001 30 3,117 n.d. to de Água e Esgoto Water investments São Joaquim Aegea Saneamento Paranatinga Águas de Paranatinga Full Concession 2015 30 17,034 46.89 0.60 e Participações Aegea Saneamento Pedra Preta Águas de Pedra Preta Full Concession 2003 29 16,397 52,55 2.02 e Participações Aegea Saneamento Peixoto de Azevedo Águas de Peixoto de Azevedo Full Concession 2000 30 20,530 36.00 3.56 e Participações Aegea Saneamento Partial Concession Poconé Águas de Poconé 2008 16 21,144 45.10 0.20 e Participações Water Pontes e Lacerda Águas Pontes e Lacerda Iguá Saneamento Full Concession 2000 30 37,000 30.15 1.32 Águas de Porto Aegea Saneamento Porto Espiridião Full Concession 2012 30 5,755 12.32 0.06 Esperidião e Participações

80 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

INVESTMENT

(R$ MILLION) ASSISTED MAJORITY CONCESSIONAIRE Total MUNICIPALITIES SHAREHOLDER DATE TOTAL

MODEL Materialized Contract CONTRACT CONTRACT BENEFITED in 2017

POPULATION Commitment TERM (YEARS) TERM

Aegea Saneamento Primavera do Leste Águas de Primavera Full Concession 2000 30 61,038 48.22 3.27 e Participações Aegea Saneamento Partial Concession Santa Carmen Águas de Santa Carmen 2001 30 4,195 7.10 0.08 e Participações Water Aegea Saneamento São José do Rio Claro Águas de São José Ltda Full Concession 2008 30 14,767 17.93 0.05 e Participações Partial Concession Sapezal Naturagua Naturagua 2000 30 21,259 n.d. 0.61 Water Aegea Saneamento Sinop Águas de Sinop Full Concession 2014 30 139,935 543.45 12.18 e Participações Aegea Saneamento Sorriso Águas de Sorriso Full Concession 2000 30 87,815 64.00 12.36 e Participações Aegea Saneamento União do Sul Águas de União do Sul Full Concession 2000 30 2,563 8.62 0,05 e Participações Aegea Saneamento Vera Águas de Vera Ltda. Full Concession 2004 37 8,026 36.89 0.33 e Participações 37 37 1,474,392 3,068.07 103.11

MATO GROSSO DO SUL

Aegea Saneamento Campo Grande Águas Guariroba Full Concession 2000 60 860,943 1,615.51 75.57 e Participações 1 1 860,943 1,615.51 75.57

MINAS GERAIS

Sanarj Concessionaria Global Engenharia. Planex Araújos Full Concession 2002 30 7,697 1.19 0.61 de Saneamento Básico Consultoria Global Engenharia. Planex Bom Sucesso Águas de Bom Sucesso Full Concession 2002 25 17,320 3.09 0.16 Consultoria Saneamento Ambiental Pará de Minas Águas de Pará de Minas Full Concession 2015 35 91,530 229.83 11.24 Águas do Brasil Global Engenharia. Planex Paraguasu Coságua Full Concession 2000 30 19,819 5.28 0.08 Consultoria

81 INVESTMENT

(R$ MILLION) ASSISTED MAJORITY CONCESSIONAIRE Total MUNICIPALITIES SHAREHOLDER DATE TOTAL

MODEL Materialized Contract CONTRACT CONTRACT BENEFITED in 2017

POPULATION Commitment TERM (YEARS) TERM

Belo Horizonte Betim Contagem Ibirité Igarapé Lagoa Santa

Mário Campos Completed Sistema Rio Manso BRK Ambiental PPP Water 2013 15 1,325,800 625.00 Pedro Leopoldo investments Ribeirão das Neves Santa Luzia São Joaquim de Bicas São José da Lapa Sarzedo Vespasiano 18 5 1,462,166 864.39 12.09 PARÁ

Aegea Saneamento Barcarena Águas de São Francisco Full Concession 2014 30 32,085 188.64 2.23 e Participações Bom Jesus do Tocantins

Santana do Araguaia BRK Ambiental Araguaia BRK Ambiental Full Concession 2015 30 46,888 80.88 0.20 São Domingos do Araguaia Saneamento São João do Araguaia Curionópolis Eldorado dos Carajas São Geraldo do Araguáia Saneatins BRK Ambiental Full Concession 2007 30 106,395 240.80 3.05 Tucumã Xinguara Águas de Novo Aegea Saneamento Novo Progresso Full Concession 2003 30 17.802 15.04 0.86 Progresso e Participações BRK Ambiental Redenção BRK Ambiental Full Concession 2012 30 36.931 n.d. 0.67 Redenção 12 5 240,101 525.36 7.02

82 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

INVESTMENT

(R$ MILLION) ASSISTED MAJORITY CONCESSIONAIRE Total MUNICIPALITIES SHAREHOLDER DATE TOTAL

MODEL Materialized Contract CONTRACT CONTRACT BENEFITED in 2017

POPULATION Commitment TERM (YEARS) TERM

PARANÁ

Paranaguá Paranaguá Iguá Saneamento Full Concession 1997 45 149,683 464.08 15.21 Saneamento 1 1 149,683 464.08 15.21

PERNAMBUCO

Abreu e Lima Araçoiaba Cabo de Sto. Agostinho Camaragibe Goiana Igarassu Ipojuca BRK Ambiental Itamaracá BRK Ambiental PPP Sewage 2013 35 3,965,548 2.954.94 304.21 Atlântico Itapissuma Jaboatão dos Guararapes Moreno Olinda Paulista Recife São Lourenço da Mata 15 1 3,965,548 2,954.94 304.21

PIAUÍ

Aegea Saneamento e Teresina Águas de Teresina Full Concession 2017 30 825,015 1,700.00 26.94 Participações 1 1 825,015 1,700.00 26.94

83 INVESTMENT

(R$ MILLION) ASSISTED MAJORITY CONCESSIONAIRE Total MUNICIPALITIES SHAREHOLDER DATE TOTAL

MODEL Materialized Contract CONTRACT CONTRACT BENEFITED in 2017

POPULATION Commitment TERM (YEARS) TERM

RIO DE JANEIRO

Araruama Saneamento Ambiental Saquarema Águas de Juturnaíba Full Concession 1997 50 217,735 241.90 9.48 Águas do Brasil Silva Jardim Armação de Búzios Arraial do Cabo Aegea Saneamento Cabo Frio Prolagos Full Concession 1998 43 336,897 1,394.26 46.78 e Participações Iguaba Grande São Pedro da Aldeia Campos dos Saneamento Ambiental Águas do Paraíba Full Concession 1996 45 465,773 696.57 27.32 Goytacazes Águas do Brasil Partial Concession Guapimirim Sources da Serra Emissão Engenharia 2000 30 42,180 14.07 0 Water Macaé BRK Ambiental Macaé BRK Ambiental PPP Sewage 2012 30 46,643 643.37 22.97 Saneamento Ambiental Niterói Águas de Niterói Full Concession 1997 50 499,028 516.30 20.77 Águas do Brasil Saneamento Ambiental Nova Friburgo Águas de Nova Friburgo Full Concession 1999 40 162,260 133.00 8.55 Águas do Brasil Saneamento Ambiental Paraty Águas de Paraty Full Concession 2014 30 30,000 146.17 0.13 Águas do Brasil Saneamento Ambiental Petrópolis Águas do Imperador Full Concession 1997 45 290,980 158.20 6.94 Águas do Brasil Saneamento Ambiental Resende Águas de Agulhas Negras Full Concession 2007 30 121,637 136.33 7.35 Águas do Brasil Rio das Ostras BRK Ambiental Rio das Ostras BRK Ambiental PPP Sewage 2007 15 127,171 385.00 0 BRK Ambiental. Saneamento Partial Concession Rio de Janeiro Zona Oeste Mais 2012 30 1,751.631 2.552.00 47.31 Ambiental Águas do Brasil Sewage Santo Antônio Partial Concession Águas de Santo Antônio CONASA 2004 30 41,312 9,03 0 de Pádua Water Aegea Saneamento Partial Concession São João de Meriti Águas de Meriti 2013 30 285,535 337.00 0.38 e Participações Sewage 20 14 4,418,782 7,363.19 197.99

84 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

INVESTMENT

(R$ MILLION) ASSISTED MAJORITY CONCESSIONAIRE Total MUNICIPALITIES SHAREHOLDER DATE TOTAL

MODEL Materialized Contract CONTRACT CONTRACT BENEFITED in 2017

POPULATION Commitment TERM (YEARS) TERM

RIO GRANDE DO SUL

São Gabriel São Gabriel Solví Full Concession 2012 30 62,367 100.79 2.14 Saneamento BRK Ambiental Uruguaiana BRK Ambiental Full Concession 2011 30 126,976 169.83 21.23 Uruguaiana 2 2 189,343 270.62 23.37

RONDÔNIA

Aegea Saneamento Ariquemes Águas de Ariquemes Full Concession 2016 30 38,874 212.17 10.47 e Participações Aegea Saneamento Buritis Águas de Buritis Full Concession 2015 30 21,850 95.35 0.65 e Participações Aegea Saneamento Pimenta Bueno Águas de Pimenta Bueno Full Concession 2015 30 30,855 63.41 4.84 e Participações Águas de Rolim Aegea Saneamento Rolim de Moura Full Concession 2016 30 43,197 107.10 3.83 de Moura e Participações 4 4 134,776 478.02 19.79

SANTA CATARINA

Balneário Gaivota Gaivota Saneamento Atlantis Saneamento Full Concession 2018 35 10,444 163.54 0 BRK Ambiental Partial Concession Blumenau BRK Ambiental 2010 35 139,631 302.80 16.43 Blumenau Sewage Aegea Saneamento Bombinhas Águas de Bombinhas Full Concession 2016 35 18,623 142.70 35.43 e Participações Aegea Saneamento Camboriú Águas de Camboriú Full Concession 2015 35 79,289 131.12 10.95 e Participações Gravatal Gravatal Saneamento Atlantis Saneamento Full Concession 2018 30 10,966 38.31 0 Itapema Águas de Itapema Conasa Infraestrutura Full Concession 2004 40 59,667 n.d. 12.35 Itapoá Itapoá Saneamento Iguá Saneamento Full Concession 2012 30 18,943 189.03 7.39 Partial Concession Jaguaruna Águas de Jaguaruna Atlantis Saneamento 2007 35 22,000 n.d. 0.09 Water Partial Concession Jaguaruna Jaguaruna Saneamento Atlantis Saneamento 2016 40 20,000 44.64 2.00 Water

85 INVESTMENT

(R$ MILLION) ASSISTED MAJORITY CONCESSIONAIRE Total MUNICIPALITIES SHAREHOLDER DATE TOTAL

MODEL Materialized Contract CONTRACT CONTRACT BENEFITED in 2017

POPULATION Commitment TERM (YEARS) TERM

Aegea Saneamento Penha Águas de Penha Full Concession 2015 35 29,223 171.02 4.05 e Participações Águas de São Aegea Saneamento São Francisco do Sul Full Concession 2014 35 48,060 63.02 6.09 Francisco do Sul e Participações Tubarão Tubarão Saneamento Iguá Saneamento Full Concession 2012 30 104.822 419,36 4.14 12 12 561,668 1,665,55 98.91

SÃO PAULO

Datema Ambiental Dqt - Saneamento Basico Álvares Florence Full Concession 2012 30 2,579 n.d. 0,19 Saneamento Básico E Meio Ambiente Andradina Águas de Andradina Iguá Saneamento Full Concession 2010 30 53,531 86.54 6.12 Samar - Soluções Ambientais Araçatuba GS Inima Brasil Full Concession 2012 30 192,096 368.47 13.94 de Araçatuba Saneamento Ambiental Araçoaiba da Serra Águas de Araçoaiaba Full Concession 2009 30 31,662 30.06 1.56 Águas do Brasil Arujá Ferraz de Vasconcelos Guarulhos Itaquaquecetuba

Mauá Águas Spat Iguá Saneamento PPP Water 2008 5,000,000 383.00 1.32 Mogi das Cruzes Saneamento Poá Santo André São Paulo (Zona Leste) Suzano Atibaia Atibaia Saneamento Iguá Saneamento PPP Sewage 2012 30 95,855 236.46 18.46 Barueri Carapicuiba Cotia Sistema de São Itapevi CGGC 1.500.000 2.214.00 500.00 Lourenço da Serra Jandira Santana de Parnaíba Vargem Gde. Paulista Latam Water Partial Concession Completed Birigui Aqua Pérola 1994 15 45,406 2.25 Participações Water investments

86 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

INVESTMENT

(R$ MILLION) ASSISTED MAJORITY CONCESSIONAIRE Total MUNICIPALITIES SHAREHOLDER DATE TOTAL

MODEL Materialized Contract CONTRACT CONTRACT BENEFITED in 2017

POPULATION Commitment TERM (YEARS) TERM

BRK Ambiental Lease of assets Campinas BRK Ambiental 2007 20 52,559 153.00 n.a. Capivari Sewage Lease of assets Completed Campos de Jordão Araucária Saneamento GS Inima Brasil 2010 23 76,000 116.61 Sewage investments Casa Branca Águas de Casa Branca Perenge Engenharia Full Concession 2018 30 30,000 62.42 0 Castilho Águas de Castilho Iguá Saneamento Full Concession 2010 30 15,366 23.50 0.98 Latam Water Guará Águas de Guará Full Concession 2000 25 21,129 3.72 0.13 Participações Sagua - Soluções Ambientais OAS Soluções Guarulhos PPP Sewage 2014 30 1,198,019 1.116.00 0 de Guarulhos Ambientais Guaratinguetá Guaratinguetá Iguá Saneamento PPP Sewage 2008 30 103,690 140.87 7.34 Saneamento Aegea Saneamento Holambra Águas de Holambra Full Concession 2013 30 14,012 78.88 8.44 e Participações Saneamento Ambiental Jaú Águas de Jahu Full Concession 2014 35 141,786 165.00 5.99 Águas do Brasil SGA - Sistema de Gestão Partial Concession Completed Jaú Águas de Mandaguahy 1998 30 57,560 33.70 Ambiental Water investments Companhia de Saneamento Partial Concession Jundiaí Trail Infraestrutura 1996 35 414,810 250.00 0.58 de Jundiaí Sewage Limeira BRK Ambiental Limeira BRK Ambiental Full Concession 1995 44 291,931 135.47 18.26 Mairinque Saneaqua Mairinque BRK Ambiental Full Concession 2010 30 46,894 82.44 3.54 Aegea Saneamento Matão Águas de Matão Full Concession 2013 30 82,307 75.02 5.56 e Participações Partial Concession Mauá BRK Ambiental Mauá BRK Ambiental 2003 30 422,783 233.00 1.76 Sewage Latam Water Mineiros do Tietê Águas de Mineiros Full Concession 1996 30 12,239 6.30 0.19 Participações Aviva Ambiental. Mirassol Sanessol Full Concession 2007 30 56,338 92.49 3.25 Iguá Saneamento Sesamm - Serviços de Partial Concession Mogi Mirim GS Inima Brasil 2008 30 60,500 91.68 0.28 Saneamento de Mogi Mirim Sewage Empresa de Saneamento Aviva Ambiental. Iguá Palestina Full Concession 2007 30 10,450 24.48 2.55 de Palestina - ESAP Saneamento CAEPA - Cia de Água e Esgoto Paraibuna GS Inima Brasil Full Concession 2015 30 18,125 15.81 0.47 de Paraibuna Piquete Águas Piquete Iguá Saneamento Full Concession 2010 30 14,107 26.15 0.23 Aegea Saneamento Piracicaba Águas do Mirante PPP Sewage 2012 30 400,949 332.63 13.58 e Participaçõe

87 INVESTMENT

(R$ MILLION) ASSISTED MAJORITY CONCESSIONAIRE Total MUNICIPALITIES SHAREHOLDER DATE TOTAL

MODEL Materialized Contract CONTRACT CONTRACT BENEFITED in 2017

POPULATION Commitment TERM (YEARS) TERM

BRK Ambiental - Porto Porto Ferreira BRK Ambiental Full Concession 2011 30 54,438 72.84 5.49 Ferreira S.A. Partial Concession Ribeirão Preto Ambient GS Inima Brasil 1995 38 682.302 362.42 49.19 Sewage BRK Ambiental Rio Claro BRK Ambiental PPP Sewage 2007 30 198.413 146.35 n.d. Rio Claro Partial Concession Salto Sanesalto Saneamento CONASA 1996 25 115,210 36.00 0.06 Sewage BRK Ambiental - Santa Santa Gertrudes BRK Ambiental Full Concession 2010 30 25,364 29.40 0.35 Gertrudes S.A. COMASA - Companhia Águas Santa Rita do Passa Quatro GS Inima Brasil Full Concession 2016 30 27,546 27.48 0.54 de Santa Rita Sanevap - Saneamento do Vale Lease of assets Completed São José dos Campos GS Inima Brasil 2012 23 209,826 88.37 do Paraíba Sewage investments São Sebastião Águas de São Perenge Engenharia Full Concession 2016 30 13,000 16.20 2.49 da Grama Sebastião da Grama Sumaré BRK Ambiental Sumaré BRK Ambiental Full Concession 2014 30 269,793 345.30 5.21 Saneamento Ambiental Votorantim Águas de Votorantim Águas do BR, SGA - Sistema Full Concession 2012 30 114,979 91.30 6.61 de Gestão Ambiental 53 40 12,173,554 7,795.61 684.65

TOCANTINS

Palmas Saneatins BRK Ambiental Full Concession 1999 30 46 municipalities 1,209,635 1,529.02 81.63 78 municipalities ATS BRK Ambiental Technical assistance 1999 25

125 2 1,209,635 1,529.02 81.63

TOTAL TOTAL INVEST- TOTAL TOTAL MUNICIPALITIES TOTAL CONTRACTS COMMITTED MENT material- POPULATION INVESTMENT ized in 2017

325 135 33,474,672 37,157.20 1,987.98

88 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

89 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN BRAZIL 2019 is a publication of ABCON – Brazilian Association of Concessionaires and SINDCON – National Union of the Private Concessionaires of Public Services of Water and Sewage

Reproduction is permitted provided that the source is cited.

Executive Coordination: Ana Lia de Castro Technical Production: Cesar Seara Priscila Bezerra Mariana Zito

Executive Secretariat: Elaine Chagas Eliana Buratto

Editorial Coordination: Em Foco Comunicação Estratégica Texts: Aurea Figueira Nelson Lourenço Rodrigo Neves Cooperation: Comitê de Comunicação

Release event: Ana Rizzo

Portuguese Review: Tarcila Lucena English Translation and Review: Nativa Tranlations

Graphic Design: Estudio Mirador Art Direction: Leandro Cagiano Art Edition: Isabela Laloni

Print: Stampato

Publication: April | 2019

90 PANORAMA OF THE PRIVATE SECTOR’S PARTICIPATION IN SANITATION 2019

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