Latin America

Approved Bill PL 4.162 mandates that all municipalities in Brazil reach universal water and sewer access between 2033 and 2040 and obligates state and local water companies to prove their financial capacity to do so. If executed, this will bring sweeping change to ownership of the country’s municipal water networks and introduce hundreds of billions in investment funding.

The combination of water stress and a constitutional overhaul are poised to drive a rethink of Latin America’s most privatized water market and water management for the economically influential mining sector.

The myriad of political and economic risks affecting water-related investments in the LatAm region will benefit firms with existing, well-established footprints. These positions of strength are even that much more important amidst recent COVID-19-related impacts, global economic volatility, and shifting political winds.

Mexican municipalities continue be trapped in a vicious circle of underinvestment resulting in poor service, limited tariff collection, and lack of revenue for improvement. This uncertainty highlights the opportunity for firms capable of navigating the risk barriers to enter.