New regulatory framework for sanitation approved – Law n. 14.026/2020 allows private sector participation in sanitation services provision and centralizes regulation in the National Water Agency (ANA)

Law n. 14.026/2020 authorizes private initiative’s participation in the provision of basic sanitation services, setting a one-year deadline for mandatory biddings concerning the rendering of such services. During this period, state-owned water and sewage companies may renew existing contracts with municipalities for up to 30 years.   

Contracts governed by the new law must define the targets to reach universal access to basic sanitation, which guarantees that 99% and 90% of the population will have access to drinking water and sewage collection and treatment, respectively, by December 31, 2033.  

The new rule also defines ANA as the regulatory body to serve as national benchmark to breaking deadlocks and enabling smaller municipalities to act together to ensure the economic-financial viability of a project.