Basic sanitation in Brazil was recently taken a notch higher through public-private concessions. The government partnered with BNDES bank in the way of bringing professional sanitation management in some of the areas facing acute sanitation challenges. Sanitation experts, such as Trata Brasil’s general manager, Edison Carlos, lauded the move arguing that the public does not have the required capacity to solve the sanitation problems by itself. Edison and Felipe Montoro Jens, an infrastructure expert, were breaking down the concession issue further.
How Private Organizations Will Benefit the Sanitation Sector
Some people argued that the entry of BNDES and other private players into the sanitation industry would compromise the position of the public in the sector. Edison disagreed with that argument saying that the private sector contributed to only about 10 percent of sanitation services in Brazil. He argued that since 70 percent of the sanitation services set aside for the public are done by government organizations, the level of expertise in the sector is guaranteed. He noted that the industry would only be complementary.
Felipe and Edison were both in agreement that government organizations in the country lack important financial management mechanisms. For this, the levels of financial wastages are too high that some of the services offered are half baked. They, therefore, noted that with the entry of private organizations, this financial wastage would be put in check and consequently the service quality would go up. The two also predicted that the private organizations would also fix water wastage problem.
Felipe Montoro Jens
Felipe Montoro Jens is a respected leader and infrastructure developer born in Rio de Janeiro 45 years ago. He is among the most decorated infrastructure experts in Brazil today. He currently works with Concessionaria do Centro Administrativo as board chair.
Felipe is an executive in several other organizations within the infrastructure sector, including Marañon Energia SA, Empresa de Generación Huallaga SA, and H2olmos.