UniversalizaSP, a program created by the São Paulo State Government to support municipalities in meeting the universal access targets for water and sewage services, is taking another step forward in implementing regional arrangements. This week, the Departments of Environment, Infrastructure and Logistics (Semil), and Partnerships in Investments (SPI) are presenting to mayors who joined the program the key assumptions that will guide the concessions. The entire process is expected to be completed by the second half of next year.
One of the highlights of the proposal is the planned annual contribution from the State to UniversalizaSP, estimated at R$ 630 million, which will be used to balance the concessions and subsidize the tariff. “This subsidy brings more security to the municipalities participating in the program, as it ensures investments, quality service, and fair tariffs for citizens,” emphasizes the secretary of Environment, Infrastructure and Logistics, Natália Resende.
Another advantage is the creation of the Municipal Funds for Environmental Sanitation and Infrastructure (FMSAI), through which each participating municipality will receive regular transfers of 4% of the concessionaire’s revenues in the municipality. These funds can be used for investments in infrastructure, drainage, and other benefits.
A single tariff for water and sewage will be established, with a subsidy from the State Government. Another benefit brought by the Government is the application of the Social Tariff to UniversalizaSP’s regional concessions. It guarantees discounts of at least 50% on water and sewage bills for vulnerable families registered in the CadÚnico. “Our goal is to ensure quality service for all residents of São Paulo, with fair tariffs,” Natália adds. According to Brazil’s New Sanitation Framework, all municipalities must provide 100% access to water and sewage services by 2033. In São Paulo State, municipalities served by Sabesp are expected to reach 100% coverage by 2029, four years ahead of the national deadline. The goal of UniversalizaSP is also to anticipate this target where possible, with dates to be defined after the completion of technical studies.
UniversalizaSP was included in the State’s Investment Partnership Program (PPI) in March this year and already has the initial participation of 218 municipalities, which are being organized into regional clusters.
Governance
Each regional concession will have its own governance structure, including a Regional Deliberative Council responsible for coordinating investments and regional issues, as well as approving the Regional Sanitation Plan. Its operation will be similar to that of URAE-1, which brings together representatives of municipalities served by Sabesp. The concessionaire will be responsible for executing the contract—whose duration is still being defined—and implementing the planned investments. Thanks to the regulatory model and contractual scale, the project will bring greater efficiency in both investment execution and infrastructure operations. The State will provide the necessary contribution to ensure tariff balance. Additionally, a regulatory agency will oversee and monitor the services, ensuring more technical and stable oversight for users in both the short and long term. “It’s important to emphasize that municipal autonomy remains intact, as the ownership of the services does not change. There is no need, for example, to dismantle existing municipal structures such as departments or local utilities,” notes the Semil secretary.
She highlights that the main advantage of UniversalizaSP is the development of efficient regional models that consider the unique characteristics of each municipality. “We cannot look at water and sewage services in isolation, without understanding each municipality’s particularities and the logic of the hydrographic basins in an integrated way, especially considering the context of climate change,” she says. Municipalities will also be able to propose the inclusion of drainage-related demands in their investment plans.
With the concession assumptions being presented throughout this week to the participating mayors, the Government expects a formal decision from each municipality on the discussed points by July 15. That date will mark the beginning of Phase 2 of the project, which involves studies and modeling in seven key areas: regulatory, tariff, legal, social-environmental, economic-financial, promotion, and communication. This phase is expected to be completed within six months, with the bidding process set to begin in the first half of 2026.