The financing of water and sewage services: an analysis of the recent past (2016-2019) and challenges of diversifying sources to achieve universalization

Abstract

Using information from the 2016 and 2019 financial statements, the article analyzes how the main providers of water and sewage services in Brazil finance themselves. The characterization of each of the different sources together with the comparison of their shares in the companies' debts aims to explain how providers have financed themselves, identifying strategies and pointing out challenges for the future leverage of investments. Specifically, the issuances of debentures, which rose significantly in the period, were analyzed. Faced with the need to more than double average investments made from 2007 to 2019 in order to universalize services in the country by 2033, as given in the National Basic Sanitation Plan and the new legal framework for sanitation, the article seeks to understand which type of funding source is most suitable for each type of investment within the sector, defending their complementarity in achieving universalization investments. Finally, some perspectives and challenges are pointed out for increasing investments with a view to universalization.

Keywords:
Basic sanitation; Water and sewage; Infrastructure; Debentures; Long-term financing; BNDES; Caixa Econômica Federal