São Paulo’s Governor, Tarcisio de Freitas, is moving ahead with privatizing Sabesp, the state’s water utility.
He’s met with 180 of the 357 mayors in areas Sabesp serves.
The governor’s team wants to consult all cities involved. Freitas plans to unveil the proposal with the State’s Environment Department.
The aim is to address each region’s unique needs.
Last August, an informational guide was released. It aims to show residents the benefits of privatizing Sabesp.
The guide says this move could attract more investment and lower rates.
By 2029, the services aim to benefit 10 million people. This includes one million new users in rural or other areas.
On July 31, the governor approved the continuation of the share offering model. Sabesp will offer additional shares on the stock market.
Freitas says the state will keep some ownership after privatization. The goal is to attract more capital.
Background
Privatization of utilities isn’t a new concept in Brazil. In the ’90s, several state-run companies were sold to private owners.
Critics argue that this often leads to increased rates. However, supporters claim it enhances efficiency and service quality.
Sabesp has been a cornerstone of São Paulo’s infrastructure for years. It provides water and sewage services to millions.
The governor’s move is part of Brazil’s broader trend toward privatization. The country aims to attract foreign investment and modernize its utilities.
The follow-on model chosen for this privatization is noteworthy. It allows the state to offer new shares while retaining some control.
This is a middle-ground approach. It aims to balance public oversight with private efficiency.
The plan of the São Paulo governor to advance the water utility sale is causing both enthusiasm and concern among the states mayors.
They wonder how it will impact services in their regions.
Each mayor has specific needs that the state government wants to address. This consultation process is key to ensuring the plan works for everyone.
More: Brazil news in English, every day from The Rio Times.
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175,664.62
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65,561.46
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11,445.90
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2,979,472
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
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