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Water privatization in Brazil: is the private sector making the same mistakes as in the past?

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  • Thalita Salgado Fagundes
  • Rui Cunha Marques

Abstract

The Brazilian water sector has implemented a regulatory framework reform aiming at universal access to water supply and sanitation, through private-sector participation. The first biddings and their exceptionally high auction prices have aroused concern about the likelihood of failure in the long term. By analysing the concessions in the states of Alagoas and Rio de Janeiro, we show that the average tariff proposed in the bids may be insufficient to recoup the investments, to pay for the bulk water, and to meet the set goals on time. In the past, similar problems of business sustainability led to failure of international concessions.

Suggested Citation

  • Thalita Salgado Fagundes & Rui Cunha Marques, 2025. "Water privatization in Brazil: is the private sector making the same mistakes as in the past?," Water International, Taylor & Francis Journals, vol. 50(6), pages 583-603, August.
    • Handle: RePEc:taf:rwinxx:v:50:y:2025:i:6:p:583-603
    DOI: 10.1080/02508060.2025.2497742
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