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Improving access to sanitation in the São Paulo region

Project

Networks and infrastructures
Sabesp Proparco Rio Tietê sanitation depolution
Signature date
Location
Brazil
Financing tool
Guarantee
Financing amount (Euro)
90000000
Financing details
Guarantee for 470 million BRAZILIAN REAIS (BRL)
Customer
Companhia de Saneamento Básico do Estado de São Paulo (SABESP)
Type of customer
Company
Country of headquarters
Brazil
Project number
PBR1090
Environmental and social ranking
B
Climate co-benefits
Project with climate co-benefits
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This information is given at the time of signature, without prejudice to any developments in the operation/project.

Proparco and IBD Invest are working with SABESP to improve access to sanitation in the São Paulo region and restore the good ecological status of the Tietê River. This involves expanding the coverage of sewage and wastewater systems in the metropolitan area of São Paulo.

Client presentation

SABESP is a semi-public company controlled by the State of São Paulo and publicly traded (New York, São Paulo). SABESP is responsible for the water and sanitation service in the 375 municipalities it serves in the State of São Paulo, covering 70% of the State’s urban population (27.8 million users for water and 24.6 million for wastewater).

Project description

The metropolitan area of São Paulo is crossed by the Tietê, a river in an advanced state of eutrophication due to wastewater discharges into the natural environment. SABESP has been conducting a major program to clean up the Tietê since the 1990s. 

IBD Invest has allocated a corporate loan to SABESP to finance phase IV of the program. Proparco is taking part in the financing through a guarantee to IBD Invest (in local currency). Phase IV of the Tietê program targets 34 municipalities in the Metropolitan Region of São Paulo, with 3 components: optimization and extension of the sewage system, extension and construction of 4 wastewater treatment plants, technical assistance for project management.

Project impact

The expected impacts of the project are as follows:

  • Support for the creation or improvement of 1.3 million connections to the sewage system in the State of São Paulo
  • A positive impact on the climate by addressing the eutrophication of the river (climate change mitigation) and reducing the prevalence of water-borne diseases in a context where they tend to increase with climate change (climate change adaptation)
  • Co-benefits for biodiversity by reducing pollution downstream from the Tietê River 
  • More than 65,000 jobs maintained or created in the project area. 

This project will contribute to the achievement of SDG 14 (“Life below water”), SDG 13 (“Climate action”), SDG 12 (“Responsible consumption and production”), SDG 11 (“Sustainable cities and communities”), SDG 10 (“Reduced inequalities”), SDG 8 (“Decent work and economic growth”) and SDG 6 (“Clean water and sanitation”).