Sergipe’s $1.2 Billion Commitment to Water and Sanitation

Sergipe (State capital city: Aracaju)

The state of Sergipe recently announced an International Public Tender for partial concession of water and sanitation services, marking a significant step towards universalizing sanitation with a staggering investment of R$ 6 billion (approx. USD1.2 billion) over 35 years. Scheduled for September 4th at the B3 headquarters in S?o Paulo, this bidding process might unlock the opportunity to expand sanitation services, meeting Sergipe's evolving needs.

Ensuring Stability and Security

Benefiting from Sergipe’s favorable geography and lower universalization costs, the project maintains stability through the continued management of water production and treatment by the Companhia de Saneamento de Sergipe (DESO). DESO's responsibility for supplying water coupled with private concessionaires managing distribution and sewage, ensures water security backed by the reliable S?o Francisco River.

Fulfilling Promises for Progress

With 2.3 million people across 74 municipalities set to benefit, the project aims for 99% urban water coverage by 2031, 99% village coverage by 2033, and 90% sewage coverage by 2033, with R$ 4.7 billion (approx. USD 950 million) earmarked for the first decade alone. This presents an enticing opportunity for investors seeking sustainable and profitable development in Sergipe.

Catalyzing Growth in the Oil and Gas Sector

In tandem with this initiative, Sergipe's oil and gas sector is thriving, driven by Petrobras' ambitious Sergipe Deep Water (SEAP) project and the Sergipe Gas Hub. SEAP, slated for initial production in 2029, promises significant oil and natural gas growth.?

With SEAP's peak production estimated between 2030 and 2035, it is projected to extract 240,000 barrels of oil per day and 18 million cubic meters of natural gas daily. Petrobras has already invested R$ 9 billion (approx. USD 1.8 billion) in deep water activities, positioning Sergipe as a strategic hub for gas industry investments.

Wondering how these initiatives will shape Sergipe's future? Don't hesitate to reach out!