Sao Paulo Seeks $5 Billion With Sale of Water Company Sabesp
- Privatization is the best option, Governor Joao Doria says
- Lawmakers working on new legal framework for the water sector
This article is for subscribers only.
Shares of Sabesp rallied to a record high after Sao Paulo State Governor Joao Doria said privatizing the water utility is still the “best option” if Brazilian lawmakers approve a bill that facilitates investment in sanitation.
Doria’s team expects the sanitation bill to start moving in Congress in August, together with the government’s plan to overhaul the tax system, as the approval of pension reform should clear the way for lawmakers to focus on other matters, Doria and his Finance Secretary Henrique Meirelles said in an interview in London. Selling control of the water utility, formally known as Cia de Saneamento Basico do Estado de Sao Paulo, could raise almost 20 billion reais ($5.3 billion), Doria said.