Brazil Water and Wastewater Opportunities

Brazil’s current drought conditions and low reservoirs have highlighted the need to reduce water loss and improve water conservation. 

In 2020, Brazil passed a new sanitation regulatory framework – (Law no. 14.026) that resulted in several positive and tangible results for the sector.  Now sanitation leads the urban environmental agenda in the country and recent concessions reached over US$ 10 million in investments. Investments will continue to grow as Brazil’s National Development Bank (BNDES) continues to support the federal government’s privatization efforts. Local experts predict a total of US$ 145 billion in network expansion investment to universalize sanitation services by 2033, including US$96 billion to expand sanitation infrastructure and $ 49 billion to restore existing and new assets.

According to a recent study published by BNDES based on the recent partnerships and concessions, around US$ 2 billion will be invested in water and wastewater equipment and technology, mostly by 2033. The bank noted that this amount represents only 5 percent of what the sector will receive throughout the next decade to allow the country to universalize water and wastewater services. 

From the total predicted investment in equipment and technology, 41 percent will be invested in equipment, 35.5 percent will go to piping, and 24.5 percent will be invested in chemicals, according to BNDES. More than 85 percent of the total value should be allocated by 2033, the deadline for the sector to guarantee universal potable water access (99 percent) and sewage collection and treatment (90 percent). In addition to the more than 20,500 miles of new piping systems, more than 100 million units of hydrometers will be demanded by the sector by 2033.

These investments will require planning from local and foreign companies to meet the burgeoning demand and creates opportunities for U.S. suppliers of equipment and technology for the water and wastewater sector. Some of the largest water companies in Brazil have expressed interest in exploring new solutions in wastewater treatment, water loss prevention, purification, reuse, and technology for the circular economy.

If you are interested in exploring opportunities in Brazil’s water and wastewater sector, please contact Commercial Specialist Thales Demarchi at thales.demarchi@trade.gov.