Goal is to end irregular situations in about 20% of the Brazilian cities

10/10/2022

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Veronica Sánchez — Foto: Wenderson Araujo/Valor

The National Water Agency (ANA) has made an alliance with control bodies and the Judiciary in an offensive against 1,117 municipalities that have not adapted to the requirements of the basic sanitation regulatory framework. The goal is to put an end to the irregular situation experienced by about 20% of Brazilian cities, putting pressure on the local authorities to comply with the new law, which completed two years in July and requires the universalization of services by 2033.

Many state-owned water and sewage utilities, especially in the North and Northeast regions, have not proven to be economically and financially able to meet this deadline. Other municipalities – including capitals such as Salvador and João Pessoa – have no valid contracts with the current providers. In both cases, there is non-compliance with the new legal framework and the municipalities must bid for the services, opening the way for the change of operator and the advance of the private sector.

The problem is that the ANA, in practice, has no attributes to enforce anything. The change of operators in an irregular situation is at the mercy of local managers, since the municipalities hold the ownership of services, and the states are in charge of designing regionalized bidding blocks – to which mayors may or may not join. The most the federal government can do is interrupt the channels of public funding, such as transfers from the Ministry of Regional Development and disbursements from the Brazilian Development Bank (BNDES) or Caixa, for those who are outside the legal framework.

ANA’s president Verônica Sánchez says that they draw up the reference standards for sanitation, but have no power,” says. The agency signed two technical cooperation agreements to seek the implementation of the sanitation law at the local level. One was signed with the National Council of the Prosecution Service (CNMP) and another with the National Council of Justice (CNJ). The idea is to provide prosecutors, attorneys, and judges with greater knowledge about what is at stake.

This way, it is intended that the control organs act in the sector’s inspection and judges are equipped to make decisions. The ANA will be responsible for issuing general recommendations. A third agreement is being negotiated, along the same lines, with the Association of Brazilian Courts of Accounts Members (Atricon).

According to estimates by Abcon (association of private sanitation concessionaires), it will be necessary to invest R$308 billion over the next four years in order not to compromise the universalization goals contained in the new law. If this investment plan is complied with, it is expected that 91% of the population will have treated water, and 71% will have sanitary sewers by 2026. Half of the Brazilians do not have sewage treatment today.

*By Daniel Rittner — Brasília

Source: Valor International

https://valorinternational.globo.com/