Sector Report – Sanitation

We are pleased to share our Brazil Water & Sanitation Sector Report.

Brazil’s sanitation sector is undergoing a structural transformation driven by the 2020 Legal Framework (Marco Legal do Saneamento), accelerating private participation, concession auctions, and long-term infrastructure investments. Despite meaningful progress, the country still faces significant water and sewage coverage gaps, creating one of the largest infrastructure opportunities in Latin America.

Key topics covered:

▪️Regulatory transformation: the impact of the Marco Legal do Saneamento, mandatory competitive bidding, regionalization and ANA’s role as national regulator

▪️ Market overview: Brazil’s sanitation coverage gaps, infrastructure deficits and the US$137+ billion investment required to achieve universalization targets by 2033

▪️ Auctions & privatizations: recent and upcoming concessions, PPPs and CESB privatizations reshaping the sector across Brazil

▪️ Operational efficiency & technology: smart metering, automation, AI-driven monitoring and ESG-linked investments improving margins and service quality

▪️ Financing dynamics: incentivized debentures, green bonds, project finance and infrastructure funds supporting long-term capital deployment

▪️ M&A activity: consolidation of fragmented municipal operators, regional block competition and strategic positioning by local and international players