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Governor of the State of São Paulo, Tarcísio de Freitas, talks about the possible privatization of Sabesp by the year 2024   

Written by Bruno Teles
Published 18/01/2023 às 21:43
Updated 19/01/2023 às 10:25
privatization of Sabesp
Privatization of Sabesp (Photo/disclosure)

“I want to reach the end of next year with the intention of carrying out a capitalization operation. Let's see if this intention will be confirmed. We understand the complexity, the sensitivity of the topic, but at the same time we are optimistic that we will be able to develop the studies, the models, I think there is a lot of interest, there will be a lot of cooperation on this journey”, he says.

Second Tarcisio, this will happen as soon as they reach the conclusion that “we will be able to make the investment, meet the deadline for universalizing the service, make more connections, build more treatment stations, invest in water reuse, reduce losses and at the same time reduce tariffs”.

The current governor added the studies so that the privatization of Sabesp could happen immediately. Tarcísio says he believes that privatization should follow the same models as Eletrobras. In a vision of him, Tarcisius, the governor of São Paulo still have to have a conversation with the federal governor. He also stated that he started a dialogue with the government and that “the relationship with Brasilia is republican, as he always said it would be.”

According to some information from the Estadão, Tarcisio de Freitas he said that the “ball of the hour” is basic sanitation and that investment funds and large investors are “greatly interested”. However, Freitas says that the Sanitation Framework has brought even more “clarity” from the point of view of regulators and that they consider setbacks in this regard to be “difficult”.

A decree that was published in São Paulo will define how the governor's investment partnership program will work in the studies of his privatization of state companies, such as Emae (Metropolitan Water and Energy Company) and Sabesp. The analyzes will be carried out by some companies that will be hired and submitted to a board just for that, which will be chaired by the deputy governor Felício Ramuth (PSD).

The government intends to attract R$ 70 billion in investments in its list of projects. The decrees that create investment partnership programs and define the rules for each concession, privatization and public-private partnership, still follow the molds of each federal government program that has existed since 2016.

At the beginning of this month, the so-called “supersecretary” for the Environment, Infrastructure and Logistics, Natália Resende, said that the initial step towards the privatization of the sanitation company in the State of São Paulo, will be taken in the first hundred days of the administration, with a lot of study to be hired.

“Some other privatization models for Sabesp can also be evaluated”, says Resende. Natália says that they will still detail all the scenarios, but that she already has a small “feeling”, or even “feeling” of how this process will follow. Resende also states that she sees the model of privatization that took place with the Eletrobras. The supersecretary also says that the government of São Paulo “will study the privatization of Sabesp, including privatization” and added: “If this is the best option, we will move towards it”. 

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Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 3.000 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

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