In São Paulo, the privatization processes continue with strength headed by the state government. However, it has faced some strikes and political resistance by the opposition in the state Chamber. On Tuesday (17/10), São Paulo Governor Tarcísio de Freitas (Republicans) sent the bill for the privatization of Sabesp – sewage and water treatment company – to São Paulo State Legislative Assembly. The governor wants to speed up the process to avoid further resistance by the eventual election of a mayor from the opposition.
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Sabesp
The Basic Sanitation Company of the State of São Paulo (Sabesp) is responsible for public basic sanitation services in 375 cities in São Paulo state, which services provided to 28.4 million people. Its main shareholder is São Paulo State Government, which controls the company’s management. It has around 12,300 employees. From 2004 to 2005, it has already been considered the sixth largest operator of water and sewage services in the world.
Faster
The proposal was forwarded on an urgent basis, which guarantees faster progress in the state Chamber. According to Tarcísio, the measure was taken so that the project “has priority in terms of debate and processing”.
According to the opposition, Tarcísio fears that a possible victory by Guilherme Boulos for the capital’s City Hall could put an end to his plans to privatize Sabesp, and that is why he has been working so hard to ensure that the process of privatization is completed soon. The next elections for mayor take place next year, likely on 6 October.
Resistance in the Chamber
Deputies that are against the project argue that the state Constitution provides that water and sewage services will be provided by a public sanitation company. In this logic, privatization would require changing the constitutional text, which does not happen via a bill.
Analysis:
Recently, on 3 October, a major strike that brought together workers from the train, metro and sewage systems brought difficulties to daily activities of people living in the Metropolitan Area of São Paulo. Particularly due to the fact that the traffic in the area is quite dense to the point that it depends on a car rotation system. Due to the nature of the service, a strike by Sabesp is unlikely to cause major disruptions. However, if associated with a prolonged strike by other categories, the impact could be relevant. Furthermore, if workers see the privatization process as a threat to them, they could gather near strategic public buildings to protest, such as the state Chamber and the Governor’s Palace, where confrontations with law enforcement could occur.
