Analysis of the Integrated Basic Sanitation Concession Model Adopted by the Municipality of São Simão, Goiás

Abstract

Objective: To assess the integrated concession model adopted by São Simão, a municipality in the state of Goiás, which encompasses water supply, sanitary sewage, and urban solid waste management services. Theoretical Framework: Law 14,026 established the year 2033 for the universalization of water supply and sanitation services and the year 2024 for the implementation of environmentally adequate final disposal in Brazilian municipalities (Brasil, 2020a). Due to reduced federal funding for investment, the federal government has sought the involvement of private entities to ensure the capacity for investment, operation, and maintenance of these services. Method: Information about the federal government's strategy was obtained from the websites of the Ministries of Regional Development and Economy and the Caixa Econômica Federal. For the case study of the integrated concession, research was conducted on the reference studies of the modeling and the bidding notice, made publicly available by the municipality on its website. Results and Conclusion: The tariffs obtained in the concession modeling indicate an average commitment of 4.12% of the household income, in line with international benchmarks for expenditure on basic sanitation and consistent with market-practice values. Tariff affordability and the economic-financial feasibility of the project were enhanced by the synergy among the three sanitation sectors. Research implications: The model enables the achievement of the goals set by the new legal framework for sanitation through a standard concession, without any counterpart or additional input from the municipality. Originality/Value: The integrated concession model represents an innovative venture with the potential to boost the economic and financial sustainability of universal access to basic sanitation in the country.