Challenges Surrounding the Privatization Debate: The Case of Sabesp

In the current scenario, where the debate over the privatization of the São Paulo State Basic Sanitation Company (Sabesp) gains prominence, it is essential to analyze the legal aspects and constitutional guidelines governing the sanitation sector. Article 216 of the State Constitution clearly establishes the responsibility of the State in instituting a multi-year sanitation plan, respecting regional and local peculiarities, as well as environmental preservation. Recently, in an interview given by Mauri Polak, Director of External Relations at APU (Association of University Professionals of Sabesp), the legal challenges faced in the face of the proposal to privatize Sabesp by the current Governor of São Paulo, Tarcísio de Freitas, were highlighted. This movement, led by Freitas, stands as a turning point in the debate over water resource management and access to basic sanitation services in the state.

Tarcísio de Freitas, a native of Rio de Janeiro, an engineer, retired military officer, and Brazilian politician affiliated with the Republicans, has emerged as a central figure in national politics, especially after his appointment as Minister of Infrastructure during Jair Bolsonaro's government. His military and technical background and experience credential him as a profound connoisseur of logistics and infrastructure issues. However, his proposal to privatize Sabesp has sparked controversies, challenging constitutional interpretations and sparking debates about the role of the State in managing water resources and basic services.

The main obstacle to the privatization of Sabesp lies in the constitutional interpretation and legal guidelines governing the sanitation sector. Article 216 of the State Constitution clearly establishes the responsibility of the State in instituting a multi-year sanitation plan, indicating that actions in this field must respect regional peculiarities, environmental preservation, and the efficiency of public services. Thus, the proposal to privatize Sabesp, led by Governor Tarcísio de Freitas, faces significant legal challenges, questioning the legality and constitutionality of the measure. The controversy surrounding this issue highlights a clash between political interests and the guarantee of fundamental rights related to access to water and basic sanitation. Since clearly the mentioned article ensures that the STATE must provide this service, under its aegis and supervision, and not, clearly, the private sector. Hence the unconstitutionality of Tarcisio's project.

The impressive numbers of Sabesp highlight its significant impact on the basic sanitation sector, not only in São Paulo but also globally. With more than 31 million people served in over 300 municipalities, the company stands out for its high coverage rates of sewage collection and waste treatment, contributing to improved quality of life and public health. Despite challenges, such as interruptions in nighttime water supply, Sabesp maintains a balanced financial health, as recognized by institutions such as the Inter-American Development Bank (IDB) and the World Bank. These data reinforce not only the company's operational efficiency but also its importance in the pursuit of universal access to clean water and basic sanitation, essential for the well-being and sustainable development of the communities served.

In conclusion, the proposal to privatize Sabesp not only contradicts the principles outlined in the São Paulo Constitution but also stands in stark contrast to the company's demonstrated expertise and commitment to public service. History has shown that privatization processes often fail to deliver the promised benefits, as evidenced by the case of Amazonas Energy's debt to Eletrobras and the subsequent inability to maintain service levels. Conversely, Sabesp's recent efforts in providing assistance during crises, such as the floods in Rio Grande do Sul, highlight the company's capability and dedication to mitigating the impacts of such events.

Furthermore, the privatization of Corsan in Rio Grande do Sul, resulting in significant layoffs and adverse consequences, serves as a cautionary tale against hastily transferring public utilities to private entities. Similarly, the experience with companies acquired by ENEL (🇮🇹 Italian multinational manufacturer and distributor of electricity and gas) in São Paulo, where promised investments were not fulfilled without repercussions, underscores the risks associated with privatization.

Ultimately, the push for privatization risks fostering a culture of corruption and impunity, as seen in instances where private companies prioritize profits over public welfare and accountability. Therefore, it is imperative to uphold the public nature of essential services like sanitation, ensuring they remain accountable to the people they serve and safeguarding against the pitfalls of privatization.