2008 - 2009 - Pinsent Masons Water Yearbook 2012 - 2013

BRAZIL
PART 2: COUNTRY ANALYSIS
BRAZIL
Economics (2006)
GNI per capita
USD4,730
GNI per capita (PPP)
USD8,800
GDP in Agriculture 5%
GDP in Industry 31%
GDP in Services 64%
Regulation and legislation
In 2000 the Brazilian Government passed a law to establish the Agência Nacional de Águas (ANA), a
new federal regulatory agency responsible for the implementation of the National Water Resources
Policy and for co-ordinating the National System of Water Resources Management. The agency will
have financial and administrative autonomy, and will be linked to the Ministry of the Environment. In
Brazil, there are 27 state water and sewage companies serving 89million people (72% of the urban
population) in 3,823 municipalities (69% of the total).
Each of the 26 states and the Federal District manage water under state jurisdiction. At the river basin
level, 43 Basin Committees have been established to date, 39 of these at state level and 4 in basins
of rivers under Federal jurisdiction. Around 50% are found in the south east. The Water Law of 1977
established the principle of decentralised and participatory management, with a discussion on the
best management practices with local users. A law on pricing provisions has been adopted in
14 states and in the Federal District, with the aim of full cost recovery through billing. One of the main
strategies of the National Sanitation Policy is to improve the level of efficiency of service providers and
co-ordination of public and private efforts in order to optimise the upgrading and expansion of service
cost without incurring excessive costs.
In March 2004, Brazil’s lower house approved a bill aimed at promoting public-private partnerships in
water and wastewater. If fully enacted, the bill will require projects to have an environmental license
and guarantees on the part of the private sector in the form of bid and performance bonds. The Sao
Paulo state government is understood to be planning to create a state controlled company,
Companhia Paulista de Parcerias, which would manage public-private partnership projects. In
June 2004, a law (10.881/2004) was passed regulating contracts for river water use between
companies and municipal water works and the National Water Agency (ANA). Water basin
committees will receive authority to set up water companies or choose a company to manage the
water in their area. This will encourage water basin regions to start charging for river water.
In 2005, Brazil approved a national water resources plan (PNRH) for 2006-16, which is designed to
secure water supplies to people currently unserved, while safeguarding some of the world’s richest
aquatic life. The National Water Resources Plans aims to double the number of inhabitants served
with potable water and sewage systems between 2005 and 2015. The plan details the current water
resources in the country and projects a scenario with targets for 2020, with guidelines for a greater
rationalisation of the country’s water supplies.
Population
2007 (million) 183.9
2020 (million) 219.2
Urbanisation in 2007 85.2%
Urbanisation by 2020 89.5%
In urban agglomerations, 2050 93.6%
National Plans
The national sanitation regulation bill aims to encourage state sanitation utilities and private sector
players operate in by putting the responsibility of sanitation regulation on states, but also allows for
the responsibility to be delegated to municipalities, or shared between states and municipalities.
In 2007, Lei 11.445/07 para o saneamento básico (water and sanitation services law) went into action,
with the aim of increasing investments to provide universal access to water and sanitation, while
allowing for flexibility regarding account circumstances and the ability of people to pay for these
services. A Program for the Acceleration of Growth (PAC) was also launched, for upgrading Brazil’s
infrastructure. USD205billion will be provided by state owned companies and the private sector and
USD30billion by the Federal Government. This plan includes raising sewerage connections nationally
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Pinsent Masons Water Yearbook 2008-2009