The proposal provides for the end of the 25% limit for Public-Private Partnerships (PPP) by the states.
247 – The decrees that regulate the New Basic Sanitation Framework signed this Wednesday (5) by President Luiz Inácio Lula da Silva (PT) will benefit 29.8 million Brazilians in 1,113 Brazilian municipalities. According to the federal government, the changes promoted by the new decrees will allow investments of R$ 120 billion until 2033. The proposal foresees the end of the 25% limit for the realization of Public-Private Partnerships (PPP) by the states. “We seek to expand the participation of the private sector and attract new investments to the sector”, said the federal government. The decrees regulate Law 11,445/2007, amended by Law 14,026/2020, which defines the guidelines for sanitation in the country.
The proposed new methodology allows providers responsible for the sanitation service in 351 municipalities to prove their economic and financial capacity and thus avoid interruption of investments. It also allows the provision of services in another 762 municipalities, which had been excluded by the previous methodology, to be included in the verification process and thus regularized, to avoid suspension of services or investments.
“Regulatory agencies will monitor the achievement of goals with transparency. Those who do not meet the goals will be prevented from receiving public funds,” stated Lula’s administration.
Another adjustment is related to regionalized provision. The Law requires that, in order to have access to federal funds, services must be provided in a regionalized manner, serving more than one municipality. The new rules extend the deadline for regionalization to 12/31/2025. The previous deadline would end on 03/31/2023, which would leave another 2,098 municipalities, with a population of 65.8 million inhabitants, which are not yet regionalized, also prevented from accessing federal resources for sanitation actions.
The new deadline guarantees the states the necessary time to properly structure the regionalized provision in the territories, as provided for in the new legal framework, without jeopardizing investments in the transition period to the new provision model.
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