SP will pay up to BRL 45 million for Sabesp’s sale study – 04/17/2023 – Panel

The Government of São Paulo signed a contract that provides for the payment of up to R$ 45.6 million to the International Finance Corporation (IFC) for the preparatory study for the privatization of Sabesp.

Management Tarcísio de Freitas (Republicans), however, states that the amount will only be disbursed in full if the study proves that the sale of Sabesp will benefit the population, with a reduction in tariffs and an increase in water and sewage treatment services.

If the conclusions about privatization are negative for the population, the American consultancy, linked to the World Bank, will receive a smaller amount, of at least R$ 8.6 million.

Questioned whether the state does not see a risk that the assessment is distorted by the company, in order to receive the full amount, the government advisory did not respond.

The contract with IFC was signed by the Secretariat for Partnerships in Investments. The portfolio has another agreement with the agency, a study of BRL 71,291,893.17 million by a consultancy on the privatization of CPTM train lines. In this case, there are no conditions for receiving the full amount.

Both contracts were signed without bidding.

In a note, the Secretariat’s press office states that the IFC has “recognized performance in the sector of modeling public sector partnerships with the private sector in several countries and with vast experience in structuring large infrastructure projects”.

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