- Country Brazil
- Estimated Investment USD 288.00 million
- Approved GIF Funding USD 1.20 million
- Sector Water Sewage & Sanitation
- Project Type
Project Preparation and Structuring Activity (Feasibility studies)
- Implementing Partners IFC
- Expected Project Completion Date 01-07-2024
- Theme Climate Smart
Challenge
The national water and sewage collection and treatment services in Brazil are below other countries with similar GDP per capita, coverage is respectively at 81% and 49% of the population, nevertheless, the new law aims to achieve universalization of water and sewage collection and treatment services in country.
Beyond coverage levels, the sector faces coordination issues, municipalities are responsible for the provision of sanitation services and need to articulate with the State to develop reference blocks at regional level to delegate the service to a new incumbent, which adds an important layer of complexity.
Solution
The GIF has partnered with IFC to provide financial and technical support to a first of a kind project that will play a key contribution for the development of a robust regionalization strategy, serving as a reference for future transactions in the country. The project will identify a private player that will be responsible for designing, building, financing, operating, and maintaining (DBFOM) the W&S infrastructure in the region covered by the project, which has approximately 100 municipalities distributed in more than 70,000 km2.
Expected Impact
The project should also promote the universalization of water and sewage collection and treatment services in the project area, northeast region of Minas Gerais State, benefiting approximately 1.5M people, improving quality of life and health outcomes, while promoting an efficient use of natural resources.
The replication effect of a sound regionalization structure should also benefit the sector and service universalization targets in the country.
