Good morning! Today, a set of bidding processes could jolt the lagging sanitation sector into action. Omicron cases confirmed in Brazil. Unreliable job data wipes out “positive” performance in 2020.
Sanitation auctions could stir up investments
The month of December will see six concession auctions for public sanitation services, with analysts expecting them to combine for up to BRL 8 billion (USD 1.42 billion) in investment pledges.
- The biggest deals will come in northeastern state Alagoas (around USD 2.9 billion for operations in 61 municipalities) and Rio de Janeiro (BRL 4.7 billion for operations in 21 municipalities, including part of the state capital).
Why it matters. While the bidding processes are likely to only attract companies already operating in the regions concerned, successful deals — from a contractual and regulatory standpoint — could lure international players for future auctions.
- The country is moving in the right direction, analysts say, with authorities remedying most of the problems seen in auctions held earlier this year.
Sanitation. Only around half of Brazil’s sewage is treated — a reality that reflects the massive development gap between rich and poor regions. Last year, Congress passed a new legal framework for the sector, allowing private players to...