Sanitation investment opportunities in Brazil

Publicado em June 29, 2021 |

After decades of stagnation, the Brazilian sewage and waste treatment system started a new stage since the Law 14.026 of July 15, 2020, the new legal basis of the sector in Brazil.

The COVID-19 pandemic has highlighted the importance of better sanitary infrastructures. Then the legal uncertainties and political interests that prevented any modernization of the sector’s infrastructure, have been largely overcome, favoring a large investment project in sewage infrastructure in Brazil.

Around 120 Billion of euros of investment are planned during the next ten years in investment in sanitation opportunities in Brazil.

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Several major projects have already been carried out since September 2020 such as the privatization of sewage services of the Metropolitan Region of Maceio (state of Alagoas) and the privatization of the large sewage company of the State of Rio de Janeiro, CEDAE in April 2021.

The treatment of solid residues is also a major challenge taken up by the authorities in the same Law 14.026/20. With 96% of waste discharged into landfills in Brazil without any treatment, the Brazilian public authorities have a lot to do and have decided to roll up their sleeves. According to the Brazilian Association for Energy Recovery of Residues-ABREN, 80 million tons of waste per year can be used as a source of energy. 

For the first time in Brazil, a specific public tender for the acquisition of energy produced from waste-to-energy will take place on 30 September 2021. This call for tenders is set up by the Ministry of Mines and Energies-MME through the National Agency for Electric Energy – ANEEL.

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The tenders will be specific to energy produced with solid residues (WtoE). The winning projects will have 5 years, from the signing of the concession contract, to start the operation. Contract according to the availability model for a period of 30 years. 

So far 12 plants for the energy recovery of residues are registered, for a total of 315 MW, distributed between the States of Parana, São Paulo and Rio de Janeiro.

According to ABREN there is potential in Brazil for the establishment of 120 production units distributed in the 28 metropolitan regions with more than 1 million inhabitants. The potential would be 2358 MW, or  3% of the national energy demand. The total investment in this sector would be more than 13 billion Euros of investment.

However, the Brazilians need know how in setting up the operation of such units. There are huge opportunities for foreign specialists.

SOLERE ADVOGADOS ASSOCIADOS is at your entire disposal for further clarifications about the opportunities regarding investment in sanitation projects in Brazil. Please contact us here or get in touch directly with our team at 55-21-9-81-01-61-51.

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