Ministry of Cities

1
Ministry of Cities National Bureau of
Environmental Sanitation
2
The Sanitation and The Growth Acceleration
Program PAC 2007 a 2010
3
4 Components of Sanitation (Law 11.445/07)

• Water Supply
• Sewage Services
• Drainage and Management of Urban Rainwater
• Urban Cleansing and Management of Solid Waste

4
Sanitation Companies
5
Sanitation Premises

• Universalize sanitation services
• Implement the new Law of Basic Sanitation
• Guarantee a stable policy of funding
• Promote integrated and sustainable interventions
  in slums (favelas)
• Supporte development projects, works and actions
  of institutional development of the service
  providers

6
Deficit Distribution by Size of Cities
more than one million inhabitants or members of
metropolitan area 52
up to 60 thousand inhabitants 21
60 to 200 thousand inhabitants 16
200 thousand to 1 million inhabitants 12
7
Sector Balance - 2003 to 2006

• Hired Average R 3.125 bi/year
• Financing (public funds) R 6.4 bi 51
• National Budget R 6.1 bi 49
• Disbursed Average R 1.55 bi/year
• Financing (public funds) R 2.7 bi 44
• National Budget R 3.5 bi 56

8
NATIONAL SANITATION BUDGED EVOLUTION (2004
2007) Total National Budged and amendments
resources
9
BALANCE RESOURCES SANITATION (2003 2007) Hired
and disbursed values
10
SANITATION SECTOR HIRED PER CAPTA - COMPARISON
11
The Growth Acceleration Program cames to
Break Barriers Overcome LimitsInvest in
infrastructure
12
Infrastructure Projects in three axes

• Logistic
• Energy
• Social and Urban

13
PACS Dimensions
R bi / US bi
14
Sector Targets
collection 85.8
86.6
15
Prioritization criteria

• Enginneering projects Basics and/or Executive
• Achieved Environmental licensing and Land
  Regularization
• National impact
• Elimination of infrastructure bottlenecks
• Areas with high rates of children mortality
• Focus on low income population (lt3 minimun wages)
• Located in critics Hydrographic Basin
• Impact in articulation and integration of the
  territory
• Environmental recovery works, including pipeline
  of San Francisco River
• Borrower Operational capacity

16
SELECTED CITIES 1th STEP

• PRIORITY METROPOLITAN REGIONS
• Baixada Santista
• Belém
• Belo Horizonte
• Campinas
• Curitiba
• Fortaleza
• Porto Alegre
• Recife
• Rio de Janeiro
• Salvador
• São Paulo
• FEDERAL DISTRICT (BRAZILS CAPITAL)
• STATESS CAPITAL
• CITIES WITH MORE THAN 150 thousands inhabitants

17
SELECTED CITIES 2nd STEP

• Selection finished in January/08, among 409
  cities with population from 50 to 150 thousands
  inhabitants
• Relevant analysis criteria
• The highest rates of children mortality
• Large sized interventions aiming universalization
  
• Developed Basic and/or Executive Engineering
  Project
• Divided in two groups
• National Budged for the poorest cities
• Financing for cities and Statess Companies able
  to get financing

18
Program to Suport the Management Restructuring
and Revitalization of Public Sanitation Service
Providers

• Aim
• Promote the improvement of efficiency, increase
  the quality and the sustainability of services.
• Beneficiaries
• States and Cities whose service providers have
  low performance and more than 50 thousands water
  connections.

19
Program to Suport the Management Restructuring
and Revitalization of Public Sanitation Service
Providers

• Expected outcomes
• Improve the capacity of service providers to the
  system management executed with PACs resources
• By the end of the Program, allow service
  providers to have financing resources to their
  investments

20
Source of Sanitation (PAC)
21
PAC 4th Balance - May 2008

• Hired R 20.1 bi

Block 1 949 projects R 16.7 bi
22
PAC 4th Balance - May 2008
Block 2 - 2729 projects R 5.7 biR 339
millions in preparatory actionR 286 millions in
public competitionR 62 million in
worksRemainder in final hiring fase
23
Sanitation For All

• Program possible from resources of funding (FGTS
  e FAT) directed to
• Water supply
• Sewage
• Management of solid waste (garbage)
• Management of urban rainwater
• Integrated Sanitation
• Institutional Development
• Studies and Projects
• Management of waste from construction and
  demolition
• Preservation and restoration of fountains
• Just for private borrowers

24
The institutional trajectory of the sanitation
sector in recent years From PLANASA to Law
11.445/07
25
PLANASA

• Management by BNH
• Resources - FGTS
• Application Priority - Water Supply
• Regulations implemented by BNH
• Centralized decisions
• Conditioned Access to resources

26
PLANASA

• Big expansion of water supply services
• Exclusion of population segments unable to pay
  for services
• Increased demand for sewage systems services
• Low performance management and economic financial
  of Statess Companies
• Lack of transparency of these Companies to
  usuaries and to Power Grantor
• Extinction of BNH in 1986

27
Federal Constitution CF/1988

• Municipal Organic Laws and States Constitutions
• Decentralization of sectoral policies
• Director Plans for Urban Development
• Participatory Budgeting
• Strengthening of the municipal councils

28
Law 11.445/07 - Establishes national guidelines
for sanitation and for the federal policy of
sanitation

• Fundamental Principles
• Universalization of access
• Completeness
• Components water supply, sewage, management of
  solid waste and management of urban rainwater
• Interaction with other public policies
• Efficiency and economic sustainability
• Transparency of shares (Information System)
• Social control
• Safety, quality and regularity
• Integration of infrastructure and services with
  the efficient management of water resources

29

• The exercise of ownership
• The holders of public sanitation services may
  delegate the organization, regulation,
  supervision and provision of the services
• They should elaborate their plans for sanitation
• Set the rights and obligations of users
• Create social control mechanisms
• Intervene and take over the operation of delegate
  services, if the regulator indicate

30
Guidelines for Federal Policy of Sanitation

• Social and territorial equity in access to
  services
• Promotion of environmental health
• maximization of the benefit-cost
• Promote the institutional development of
  sanitation
• Promote scientific and technological development
  
• Reduce the environmental impacts from the
  implementation and development of actions, works
  and services

31
Nacional Information System Sanitation - SINISA

• Data systematization to the provision of public
  sanitation services
• Statistics, indicators and relevant information
  to demand and supply characterization
• Efficiency and Effectiveness services assessment
  and monitoring
• SINISA information be public and accessible to
  all (internet)

32
The implementation challenge (Law 11.445/07)

• Establishment of the National Plan of Sanitation
• Encourage States and Municipalities for the
  development of their respective Plans
• Stimulate consortia creation (Law 11.107/05) and
  partnerships with private sector
• Growth Acceleration Program (PAC Sanitation) -
  R 10 billions/year
• R 5 billions - Public Funds (funding)
• R 2 billions Nacional Budget
• R 1 billion National Health Foundation
• R 2 billions States, Municipalities and
  Service Providers

33
FGTS Numbers
34
FGTS Sanitation
35
FGTS Sanitation
36
FGTS Sanitation
37
FI - FGTS

• Invests in eletrical energy, sanitation, housing
  access, subways, hydro-resources, ports,
  railways, waterways
• Manegement and administration CAIXA (Public
  Bank)
• Investment Comittee aprove investments
• CAIXA take risks (minimum return guaranteed TR
  3 to FGTS)
• Workers can have results participation (quotas
  from FI-FGTS, limited to 10 count)

38
FUNDO DE INVESTIMENTO - FI-FGTS
Desenho Esquemático do FI - FGTS
FI-FGTS
Comitê de Investimentos
Conselho Curador FGTS
CAIXA Administrador/Gestor
FGTS
Aportes R
Participação (Equity)
SPE
SPE
SPE
Debêntures
FIDC
SPE
Debêntures
FIDC
Aportes R
SPE
Debêntures
Participação
Dívida (Debt)
SPE
Co-Investidor/ Empreendedor Operador
Projetos
Projetos
Projetos