The government of Rio Grande do Sul encountered great resistance among municipalities in the interior of the state to the privatization plan of Corsan, a state basic sanitation company that it intends to put up for sale at the beginning of next year.
Only 74 of the 317 municipalities served by the company currently signed new contracts with it until Thursday (16), the last day established by state legislation for the adhesion of city halls to a crucial stage for the success of the privatization.
The 74 municipalities that adhered to the government plan comprise most of the population served by Corsan, who live in small and medium-sized cities in the interior and in the metropolitan region of Porto Alegre, and represent 52% of its revenue, according to the company.
The new legal framework for the sanitation sector obliges municipalities with expired contracts to open public tenders to hire new concessionaires, but allows the renewal of contracts with state companies that are on the way to privatization, which makes them more attractive to investors.
Many municipalities served by Corsan have doubts about the gains they can obtain from privatization, despite the incentives offered by the state. Those who signed new contracts, valid until 2062, received shares of the company and guarantees to maintain current rates without adjustments other than inflation.
With Ricardo Balthazar (interim), Andressa Motter e Ana Paula Branco.
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