The Governor of the State of São Paulo in Brazil, Tarcisio de Freitas, announced earlier this week that the state-run water utility, Sabesp, will be partly privatized through the sale of shares, reports Reuters. He also said the state will maintain a minority stake in Sabesp.
The objective of this plan is to attract an additional 10 billion reais in investments (about $2.1 billion) and generate approximately 66 billion reais ($13.97 billion) by 2029.
These funds will be utilized to expedite the modernization of water sanitation services within the state over the next three years. It's important to note that the privatization process is still contingent on obtaining regulatory approvals.
Earlier in March, Governor Tarcisio de Freitas said that the state would engage the World Bank's International Finance Corporation to study the possible privatization of the state’s water utility. At the time, he highlighted the complexity of the endeavour, and noted Sabesp will only be privatized if “we reach the conclusion that we are going to increase efficiency, have upsides, reduce tariffs.” The privatization is expected to occur in 2024.
