The state of Pernambuco has successfully auctioned two major sanitation blocks, attracting significant investment and marking a pivotal moment for infrastructure development in the region. The auctions, held on Thursday, December 18th, garnered substantial bids, signaling strong private sector confidence in the state’s water and sewage services.
This landmark deal is set to transform the lives of millions by prioritizing the universalization of essential services. The agreements stipulate ambitious targets for water and sewage coverage, alongside significant reductions in water loss, underscoring a commitment to sustainability and public health.
The substantial financial commitments from the winning bidders are expected to drive widespread improvements, addressing long-standing challenges in water distribution and wastewater treatment. This initiative is poised to be a catalyst for positive change across Pernambuco. According to information released by Estadão Conteúdo, the two sanitation blocks in Pernambuco auctioned on Thursday, December 18th, totaled approximately R$4.2 billion in upfront payments.
Patria Enters the Sanitation Sector with a Bang
In the first auction, the Patria fund, through its Infraestrutura BR v Saneamento Holding II entity, secured the Sertão micro-region. This block encompasses 24 municipalities. Patria’s winning bid of R$720 million represented a staggering 727% premium over the minimum bid of R$87 million outlined in the tender documents. The fund committed to a maximum tariff discount of 5%.
This strategic acquisition marks Patria’s debut in the sanitation sector, demonstrating a bold entry into a crucial infrastructure area. The firm outbid competitors Aegea and VPE Participações, which is part of the Cymi group and was acquired by the French infrastructure giant Vinci in 2021.
BRK and Acciona Consortium Dominates the Second Block
The second auction saw the consortium formed by BRK and Acciona emerge as the sole bidder for the RMR-Pajeú micro-region. This extensive block includes 150 municipalities, importantly featuring the state capital, Recife, and the tourist destination of Fernando de Noronha. The consortium offered a maximum tariff discount of 5% and a substantial upfront payment of R$3.5 billion, achieving a 60% premium over the minimum offer.
The combined investments from these two concessions are projected to reach approximately R$19 billion over the 35-year contract period. The RMR-Pajeú block is set to receive the lion’s share, with an estimated R$15.4 billion allocated for investments. The Sertão block is slated for R$2.938 billion in investments, with an additional R$773 million earmarked for production-related works.
Ambitious Goals for Universal Sanitation
A core tenet of these concessions is the **universalization of sanitation services**. The project mandates significant improvements by 2033, aiming to extend access to clean water to 99% of the population and connect 90% to the sewage network. Furthermore, a key objective is to reduce water losses to under 25%.
Current data highlights the urgency of these improvements. Pernambuco currently provides water access to approximately 87% of its population, with only 34% connected to the sewage system. Water losses are also a significant concern, standing at 48%. These figures underscore the transformative potential of the new investments in enhancing public health and environmental quality across the state.
Empowering you to master your money with confidence and clarity. On this channel, we break down personal finance—from budgeting basics and saving smarter to debt-free strategies and practical investing—all in easy-to-understand language.
Expect weekly deep dives into real-life financial questions, step-by-step tutorials, and expert insights that make money topics approachable and actionable. Whether you’re building emergency savings, paying off loans, or planning for the future, you’re in the right place to get informed, empowered, and financially confident.