By Brazil Stock Guide – Brazil’s Minas Gerais state assembly approved in a first-round vote a bill that allows for the privatization of state-controlled water utility Companhia de Saneamento de Minas Gerais (CSMG3). The bill passed with 50 votes in favor and 17 against, exceeding the required 48 votes. The proposal now proceeds to the Legislative Assembly’s Committee on Financial Oversight and Budget (FFO) for review. Before the plenary vote, 29 amendments to the text, all presented by the opposition, were analyzed and subsequently rejected.
The bill’s rapporteur, Deputy Zé Guilherme (PP), argued against the amendments, stating that worker contract protections were already covered in the latest substitute text. That text stipulates that a privatized Copasa must ensure tariff moderation, improved water quality, and the maintenance of employment contracts, with the state able to reassign public servants after 18 months. The session was marked by protests, with lawmakers and attendees holding signs and shouting, including chants of “traitor.”
Copasa’s tariff review suspended amid regulator strike
Companhia de Saneamento de Minas Gerais (CSMG3) said its third periodic tariff review was suspended by state water regulator Arsae-MG after an agency staff strike caused procedural delays.
In a market filing Monday, the Brazilian water utility said Arsae-MG provisionally halted the final results of the process. Copasa added that it will monitor developments and that under state law, financial losses from date changes will be compensated.
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