São Paulo: Sabesp privatization should follow Eletrobras model

Natália Resende, secretary of Infrastructure, Environment and Logistics of São Paulo, said that the privatization format of the Basic Sanitation Company of the State of São Paulo (Sabesp) should follow the same model as Eletrobras.

According to her, the state government intends to keep the final word on relevant investments.

According to Natália, the model allows municipalities without water supply and sewage not to be abandoned in the future.

The secretary points out that privatization will not result in a tariff increase.

“We are talking here about the extension of contracts, for example, with Sabesp; to increase and anticipate investment”, said Natália.

“When you increase the term, you can also lower the tariff. We will be able to do this combination of regulatory issues to have the final objective.”

Natália also explained how she intends to maintain control of the state government in decisive matters, even with the privatization of Sabesp.

“What we can do is dilute these actions in Eletrobras’ logic”, she said.

“That is, increase the number of private shares, but remain with what we call the golden share, for example, which means: in strategic decisions, the State remains with voting power.”

Last week, Governor Tarcísio de Freitas participated in the World Economic Forum, in Davos, Switzerland.

The manager discussed with foreign investors the privatizations he should carry out in São Paulo, including Sabesp.

With information from Revista Oeste

More: Brazil news in English, every day from The Rio Times.