Brazil Seeks to Improve Sanitation Efficiency Through Private Partnerships

The government recently announced that they will upgrade the management and quality of sanitation services through concessions to private initiatives. According to industry experts like Edison Carlos of Trata Brasil and Felipe Montoro Jens, the director of the Concessionaria do Centro Administrativo, the change in management into the private sector will increase efficiencies and decrease downtime for residents of those areas.

 

According to Felipe Montoro Jens, the amount of government waste has hampered the efficiency of the basic sanitation. In Brazil, 90 percent of the services are handled publicly, and 70 percent of that is at the state level. By encouraging a public-private partnership, the government can bring its decades of experience into public sanitation management and the private sector can bring its focus on cost-effectiveness and also the added resources only found in the private sector.

 

BNDES will work to develop action plans in each state based on the current conditions that the areas are in. Some projects will require a higher level of investment than others. Through these partnerships, the idea is not for people to be left behind, but rather that they finally receive the level of services that they require for water and sanitation. Clear goals and targets are needed, Edison Carlos said, to make sure that the partnership is achieving what it is broadly supposed to be doing.

 

Felipe Montoro Jens also explained that the costs of the services to the government are bound to change as the private sector steps in with its greater level of resources, money, and investment potential. Lack of money caused water and sanitation efforts to suffer in recent months.

 

Infrastructure expert Felipe Montoro Jens, who was instrumental behind much of this deal, has long history of working with the private energy sector throughout the world. He used to work in Project Development at the Terna S. p. A and was in Enron’s structured finance division.

 

His educational background is in management and business administration. He holds a degree in Business Administration from Fundao Getlio Vargas and a Master’s in International Management from The American Garvin School of International Management.