The São Paulo government’s strategy for the privatization of Sabesp

The governor of São Paulo, Tarcísio de Freitas, is considering keeping a stake in controlling the Basic Sanitation Company of the State of São Paulo (Sabesp) after the privatization to continue having relevance in the decision-making process.

The golden share model he defended was used in the privatization of Vale and allowed the State to have special powers within the company, being able to veto important decisions.

“We can even keep a strategic participation in the company, a golden share,” he said.

“That is, we will have a relevant role in strategic decision making, but you give up control,” observed the governor, in an interview on the Jovem Pan radio program Pânico, on Monday 30th.

The money raised from the sale of Sabesp control to private capital can be used to invest in the sector itself, bringing sanitation to regions where Sabesp does not yet operate, explained Freitas.

The State will still conduct the studies, but according to the governor, the municipalities will benefit, and the tariff for citizens will decrease.

“The city halls win, the municipalities win, and the citizens win because they will have a more efficient service, which will count on a lot of investment, and will be universalized in a shorter period and with a lower tariff”, justified the governor.

Currently, Sabesp serves a little more than half of the municipalities in the state and is the company with the largest customer base concentrated in a single area in the world.

Over the next four years, Sabesp expects more than R$26 billion in investments.

With information from Revista Oeste

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