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Key stakeholders

As shown in the study, companies are repositioning themselves in the market of water treatment. Some have grown in the last years, mainly due to new possibilities of business in PPPs (Public-Private Partnerships).

This is the case of companies such as Odebrecht Ambiental S.A. and OAS Soluções Ambientais S.A. Their annual turnover grew respectively 32% and 28% in the last 2 years. Estre Ambinetal S.A. also grew through the acquisition of other companies.

However, 2012 was a weaker year for business in private sphere. Brazilian economy grew less and industries such as Steel, Oil & Gas and Pulp & Paper did not invest in large construction works, which affected water treatment companies who mostly deal with the private sector. This was the case of Degremont, Enfil, Centroprojekt and CAB Ambiental. The first two are repositioning themselves towards BOT (Build, Operate, Transfer). Furthermore, Food & Beverages industry is attracting attention from the water treatment companies for its potential.

The government, in its intention of overcoming public sector inefficiency, is allowing PPPs for the development of sanitation. The PPP contract supports federal government with investments and improvements of infrastructure by hiring private companies that provide public services during a defined period of time. Companies like Odebrecht which have won several PPP projects are being successful in taking market shares.

For example, public and private players are working together in the development of the sewage network in Recife and surroundings, in Pernambuco, the investment is of 4,5 Billion BRL (around 2 Billion USD). The private companies Foz do Brasil (from Odebrecht group) and Lidermarc will invest 3,5 Billion BRL while Pernambuco’s public concessionaire COMPASA will invest 1 Billion BRL in the project. The objective is to increase sewage coverage from 30% to 90% for 14 municipalities. The term of contract is of 35 years.