en.Wedoany.com Reported - São Paulo State plans to hold a sanitation concession auction for cities not served by the state's basic sanitation company (Sabesp) by the end of 2026, with a total investment scale estimated at 30 billion reais. State Infrastructure and Environment Secretary Natália Resende said in an exclusive interview that the auction is likely to take place after the elections to follow the established timeline.
The initiative is part of the UniversalizaSP program launched in 2023, which plans to divide the expected 146 cities into four to five regional blocks, with block divisions determined by watershed and state water resource management unit (UGRHI) logic. The project's public consultation ended on June 12, and the next step is to incorporate suggestions and determine the number of blocks and participating cities.
The total project scale is 30 billion reais, covering 20 billion reais in investment and operating costs. In addition to private investment, the state government will also invest approximately 50 billion reais to subsidize structural projects. Resende stated that while this investment is substantial, it is necessary and preferable to relying on temporary measures such as well drilling over the long term.
The market has shown interest in the project. Sabesp has indicated it is studying synergies with the project, and multiple participants are also in discussions. Resende noted that São Paulo State's regulatory stability helps attract quality participants. Currently, the state government is in discussions with regulatory bodies such as Arsesp and Cetesb, planning to establish a regulatory body for each block and ensure legal certainty and predictability in contracts.
The Universaliza program also incorporates drainage services to enhance urban resilience. The state government is paying more attention to drainage through the State Water Resources Fund (Fehidro) and is working with cities to develop macro-drainage plans. The project considers an investment horizon until 2060, consistent with the state's sanitation planning timeline. Including Sabesp and Universaliza, the total investment scale reaches 360 billion reais.
