Social effectiveness and private sanitation concessions: the CEDAE auction in Rio de Janeiro, Brazil

Reis, Fátima de Carvalho Madeira; Kligerman, Débora Cynamon; Cohen, Simone Cynamon; Nogueira, Joseli Maria da Rocha

doi:10.1590/1413-81232023282.08982022EN

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FREE THEMES • Ciênc. saúde coletiva 28 (2) • Feb 2023 • https://doi.org/10.1590/1413-81232023282.08982022EN copy

Social effectiveness and private sanitation concessions: the CEDAE auction in Rio de Janeiro, Brazil

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Changes in the regulatory and legal framework for Brazil’s water and sanitation sector (Law 14,026, July 15, 2020) require competitive bidding for service contracts, even in cases where the provision of services was previously delegated to state-owned utilities under program contracts. The aim of this study was to identify the actors who benefited from these changes to the legislation and assess the social effectiveness of the privatization of water supply and sewerage services in the state of Rio de Janeiro by investigating the auction of services provided by the public utility CEDAE in four blocks comprising 35 municipalities in April 2021. We conducted an exploratory analysis of secondary data and used the systemic integration method to identify the main actors involved in the concession process and the role they played. It is concluded that federal, state, and municipal governments, the Brazilian Development Bank, and the concessionaires have gained from the concessions, while the percentage of low-income populations connected to the sewage collection or drainage network is lower and tariffs are higher in municipalities served by the private sector when compared to the municipalities encompassed by the auction.

Key words:
Water supply; Sewerage systems; Effectiveness

State of Rio de Janeiro and municipalities	Blocks (30/04/2021)	Percentage of the overall population registered in the Cadastro Único (%)		Water distribution network (%)		Sewage collection or drainage network (%)
State of Rio de Janeiro and municipalities	Blocks (30/04/2021)	2015	2018	2015	2018	2015	2018
State of Rio de Janeiro		28.2	24.9	75.5	75.8	72.3	72.9
Municipalities encompassed by the auction
São Sebastião do Alto	1	14.6	10.6	44.3	47.8	43.1	51.1
Aperibé		11.1	11.2	88.6	94.1	89.4	89.9
Cambuci		15.5	13.2	72.9	73.0	74.7	83.6
Cantagalo		12.0	8.2	66.9	67.9	66.4	65.6
Duas Barras		8.6	8.6	60.0	72.8	4.3	40.6
Casimiro de Abreu		8.5	6.7	90.0	90.3	29.3	41.6
Cordeiro		9.2	6.7	85.5	90.2	87.9	89.4
Itaocara		13.5	10.7	79.2	79.3	78.5	76.4
Miracema		12.1	57.9	89.5	89.5	94.2	92.2
São Francisco de Itabapoana		73.8	66.1	18.9	20.2	0.3	1.1
Tanguá		47.0	42.2	29.9	39.6	39.3	35.1
Cachoeiras de Macacu		41.2	38.9	35.1	57.2	25.7	34.5
Rio Bonito		40.3	37.8	39.6	42.1	55.8	59.3
Saquarema		41.0	30.3	27.3	28.0	9.2	7.2
Itaboraí		32.8	32.4	23.1	21.4	42.0	38.0
Magé		46.4	37.9	34.3	31.0	46.8	46.5
Maricá		29.7	34.1	12.0	15.9	6.2	10.9
São Gonçalo		28.6	25.8	67.4	70.6	63.9	68.2
Miguel Pereira	2	10.2	9.3	49.9	56.9	38.4	44.1
Paty do Alferes	17.6	13.0	47.9	57.8	17.6	23.0
Rio Claro	3	9.1	7.4	59.6	68.7	64.1	73.5
Pinheiral		12.4	11.2	90.7	90.7	96.7	91.5
Piraí		8.7	6.5	80.7	78.9	76.4	79.2
Paracambi		35.9	37.6	81.8	79.9	89.8	88.4
Seropédica		38.1	36.1	97.5	70.5	54.4	38.8
Itaguaí		37.4	29.6	86.8	86.4	87.2	88.0
Belford Roxo	4	41.0	39.7	72.9	73.1	73.3	76.7
Japeri		51.7	41.1	77.0	61.9	60.2	52.8
Mesquita		32.1	29.4	86.4	89.8	89.0	93.5
Nilópolis		26.2	22.3	87.1	60.5	90.1	62.9
Queimados		51.1	40.2	77.9	79.0	79.6	81.2
São João de Meriti		26.0	21.1	92.4	92.8	93.6	95.2
Duque de Caxias		36.0	27.6	64.6	65.5	82.8	84.3
Nova Iguaçu		33.3	31.7	66.3	60.5	71.3	68.6
Rio de Janeiro¹	1, 2, 3 and 4	21.4	19.9	95.2	94.9	91.3	91.9
Mean		27.8	25.8	65.1	65.7	60.4	61.8
Municipalities served by the private sector²
Mean		26.4	22.1	66.8	69.5	48.7	51.8

State of Rio de Janeiro and municipalities	IN055_AE - Total water coverage index (%)	IN056_AE - Total sewerage coverage index (%)	IN004_AE - Mean tariff (R$/m3)	IN055_AE - Total water coverage index (%)	IN056_AE - Total sewerage coverage index (%)	IN004_AE - Mean tariff (R$/m3)
State of Rio de Janeiro and municipalities	2015			2018
State of Rio de Janeiro	92.2	64.5	3.66	90.5	65.4	4.51
Municipalities encompassed by the auction
São Sebastião do Alto	51.5	(-)	3.32	47.4	(-)	3.44
Aperibé	96.0	(-)	3.32	86.0	86.9	4.10
Cambuci	78.6	(-)	3.32	75.6	65.8	4.28
Cantagalo	77.9	73.4	2.00	69.9	100.0	4.87
Duas Barras	78.5	14.2	3.32	69.6	11.6	3.99
Casimiro de Abreu	98.7	57.0	2.45	76.4	47.8	0.60
Cordeiro	99.1	46.1	3.32	95.2	40.2	1.90
Itaocara	90.8	(-)	3.32	88.3	73.9	3.90
Miracema	99.8	97.0	3.43	90.3	95.1	4.50
São Francisco de Itabapoana	73.3	1.2	3.32	42.1	1.0	3.93
Tanguá	67.7	31.2	3.32	51.7	26.8	3.66
Cachoeiras de Macacu	87.0	56.9	0.76	94.5	54.6	0.24
Rio Bonito	86.6	(-)	3.32	77.0	73.5	4.47
Saquarema	91.8	73.4	5.25	97.3	74.0	6.16
Itaboraí	80.5	42.3	3.32	74.1	34.7	5.31
Magé	78.9	42.4	3.32	72.9	37.6	4.39
Maricá	58.3	12.1	3.36	41.8	10.0	3.04
São Gonçalo	84.5	38.6	3.90	81.3	33.5	1.59
Miguel Pereira	99.9	45.5	3.32	78.8	(-)	2.86
Paty do Alferes	72.5	65.1	3.63	69.1	(-)	4.16
Rio Claro	67.6	(-)	3.32	67.2	(-)	3.98
Pinheiral	90.2	100.0	3.32	74.2	86.7	4.26
Piraí	99.5	36.1	3.32	77.5	32.2	0.05
Paracambi	73.6	45.9	3.32	70.7	70.8	4.79
Seropédica	70.8	33.3	3.32	68.4	32.8	7.14
Itaguaí	89.0	39.2	3.32	83.2	39.5	5.13
Belford Roxo	80.3	40.7	3.35	76.5	38.8	4.06
Japeri	74.0	(-)	3.32	72.4	(-)	3.47
Mesquita	97.1	43.7	3.34	97.0	48.4	4.78
Nilópolis	99.8	99.8	3.32	97.7	93.1	4.07
Queimados	85.2	40.7	3.32	84.1	42.2	2.99
São João de Meriti	93.4	48.9	3.32	91.6	60.5	4.50
Duque de Caxias	86.2	44.1	3.33	84.5	43.1	3.17
Nova Iguaçu	93.6	45.1	3.33	93.2	45.0	0.13
Rio de Janeiro¹	98.3	83.1	3.83	97.4	85.1	5.18
Mean	84.3	49.9	3.29	77.6	52.8	3.69
Municipalities served by the private sector²
Mean	90.0	71.3	4.35	90.6	70.9	5.41

Blocks	Winning consortium	Minimum bid	Bid	Date contract signed
Block 1: made up of 18 neighborhoods in the south zone of RJ and 18 cities, including São Gonçalo and Maricá.	AEGEA	R$ 4.036 billion	R$ 8.2 billion, 103.13% above the minimum bid	August 2021
Block 2: made up of the Barra and Jacarepaguá regions of RJ (20 neighborhoods from the west zone) and the cities Miguel Pereira and Paty do Alferes.	Iguá Saneamento	R$ 3.172 billion	R$ 7.3 billion, 129.68% above the minimum bid	August 2021
Block 3*: made up of 22 neighborhoods in the west zone of the capital and the neighboring municipalities of Itaguaí and Seropédica, as well as four other municipalities.	-	R$ 908 million	No bids made	-
Block 4: made up of 106 neighborhoods in the center and north zone of RJ and eight cities, including Duque de Caxias, Belford Roxo and Nilópolis.	AEGEA	R$ 2.503 billion	R$ 7.2 billion, 188% above the minimum bid	August 2021

ABRASCO - Associação Brasileira de Saúde Coletiva Av. Brasil, 4036 - sala 700 Manguinhos, 21040-361 Rio de Janeiro RJ - Brazil, Tel.: +55 21 3882-9153 / 3882-9151 - Rio de Janeiro - RJ - Brazil
E-mail: cienciasaudecoletiva@fiocruz.br

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[1] Chief editors:

Romeu Gomes, Antônio Augusto Moura da Silva