Presentation short abstract

The presentation examines how financialization has become embedded in the provision of water and sanitation services (WSS) in Brazil, discussing the role the National Bank for Social and Economic Development and the characteristics of the new private companies that are leading WSS provision

Presentation long abstract

Over the past years, water and sanitation services (WSS) in many countries have undergone profound transformations driven by processes of financialization. This paper examines how financialization has become embedded in the provision of water services in Brazil. The privatization of these services has expanded rapidly over the last six years, and in 2025 approximately 42.6% of Brazilians have their services provided by private companies. This process has been facilitated by a new national legal framework that creates greater incentives for private sector participation in WSS and reduces financial support for public services. Furthermore, the National Bank for Social and Economic Development (BNDES) has played a significant role in organizing privatization projects and providing financial support to private companies.

In 2025, within the universe of private concessions, the five largest companies serve 92% of the population covered by private operators. These companies are primarily controlled by financial agents. Given the central role of BNDES in both structuring WSS privatization projects and financing the private companies that have taken over these services, this paper aims to discuss the role of the bank, the financial flows in water and sanitation services from public funds to private companies, the different strategies developed by private operators to maximize surpluses through financial instruments, and their cascading effects on the management of the services.