Commercial and operational strategies by large sanitation companies: the experience of the State of São Paulo

Abstract

The late 20^th century witnessed the rise of public policy models based on market solutions which stimulated privatization process and public-private partnerships in basic sanitation services. The aim of this work is to evaluate the commercial and operational strategies adopted by the Companhia de Saneamento Básico do Estado de São Paulo – Sabesp ( the sanitation company of São Paulo State) in view of the current changes of global sanitation industry. The methodology sought to identify convergences and divergences between the interests of investors and users, based on the analysis of the economic and operational information available in the shareholders’ reports, highlighting the following aspects: human resources, investments, tariffs, operational efficiency and profitability. The investigation concluded that Sabesp has followed strategies similar to those observed in companies operating in the international market, although it has diverged in some aspects, possibly due to the characteristics of the sanitation infrastructure in São Paulo. Finally, in opposition to the harmony advocated in the texts that defend the market solutions, this research pointed out in the design of the strategies adopted by Sabesp the conflicts of interest between investors and users.

Basic sanitation; Environmental management; Urban infrastructure; Citizen participation; Urban services