Clifford Chance

New Brazilian Water and Sanitation Regulatory Framework

August 14, 2020

This briefing offers a description of the main aspects of the new regulatory framework for the water and sanitation sector in Brazil.

On June 24, 2020, the Brazilian Senate approved the new regulatory framework for the water and sanitation sector. On July 15, 2020, President Bolsonaro enacted the law but vetoed several sections of the bill. The vetoes are now subject to Congressional review and Congress can vote to disregard the vetoes and enact the original provisions in their entirety. 

One of the main outcomes expected from the New Framework is an increase in opportunities for privatization and private investment in the water and sanitation sector in Brazil. Unlike all other Brazilian infrastructure sectors, the water and sanitation sector has not yet been fully opened to private investment. The New Framework sets the goal of universal coverage of sanitation services in Brazil by 2033. Achieving this goal is expected to require investments in the range of R$500 billion (approximately US$90 billion) to R$700 billion (approximately US$130 billion).

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