São Paulo Governor announces partnership with World Bank agency to privatize Sabesp

On Wednesday (5), Tarcísio de Freitas, governor of São Paulo, announced a contract with IFC, an agency of the World Bank, to conduct studies on the possible privatization of Sabesp, the state sanitation company.

While participating in the Brazil Investment Forum, organized by Bradesco BBI, the governor highlighted his optimism about the company’s privatization.

“I am optimistic about the privatization of Sabesp because the reasons are good.”

“It is a company with a cost per person that is more than double that of a private enterprise.”

“The cost of connection is more than double that of private enterprise,” said the governor.

Tarcísio declared that the privatization of Sabesp will take place in 2024 and that the model for the sale of the company will foresee investments in municipalities with less profitable operations for the private sector.

He affirmed that the privatization contract would tie Sabesp’s obligations with the less attractive municipalities from the operation point of view.

Sabesp is the “crown jewel” of a plan of 15 concessions of the Tarcísio government.

Besides the company, the project foresees the privatization of Emae and the Intercity Train São Paulo-Campinas concession.

With information from Brasil Sem Medo

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