Brazil's Minas Gerais State Invests $120 Million in Road Construction Using Copasa Privatization Funds

en.Wedoany.com Reported - The government of Minas Gerais, Brazil, announced on June 23, 2026, an investment of 600 million reais (approximately $120 million) for road infrastructure improvement projects in the eastern region of the state. These funds, derived from the privatization of the state's water utility company Copasa (Companhia de Saneamento de Minas Gerais), will be disbursed gradually over the next five years.

Copasa is the largest water and sewage treatment company in Minas Gerais, previously 50.3% controlled by the state government. In early June 2026, the state government completed the privatization of the company, with total transactions amounting to 8.4 billion reais. The privatization was carried out through equity offerings in the local variable-income market. Following the transaction, Brazilian energy and infrastructure group Equatorial Energia acquired a 30% stake in Copasa for 5.59 billion reais, becoming its reference shareholder. Investment fund management company Perfin increased its stake from 15% to 20%. The state government retained a 5% stake.

Minas Gerais is one of Brazil's largest states, rich in mineral resources, and its road network is crucial for transporting commodities such as iron ore. This road investment is a concrete measure by the state government to utilize privatization proceeds to improve infrastructure and promote regional economic development. The state government stated that the funds will be used for the maintenance and upgrade of multiple highways in the eastern region. The completion of Copasa's privatization marks a significant step for Minas Gerais in marketizing state assets, and Equatorial Energia's entry is expected to bring new management expertise and investment capacity to Copasa. The announcement of this road investment plan serves as a typical case of privatization proceeds being reinvested into infrastructure construction, also providing a reference model for asset disposal by other Brazilian states.

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