Brazil's Alckmin calls for inquiry into Sabesp privatization

Brazil's Vice President Geraldo Alckmin said on Tuesday, September 22, that the privatization of water utility Sabesp should be investigated. Speaking at a political event in São Paulo, Alckmin questioned how one of the world's most valuable utilities attracted only a single interested buyer during the sale conducted under São Paulo Governor Tarcísio de Freitas.

The transaction reduced the State of São Paulo's stake in Sabesp from 50.3% to 18.3%, generating BRL 14.8 billion. Equatorial entered as a strategic reference investor, acquiring a 15% stake for BRL 6.9 billion. Shares were sold at BRL 67, representing an 18.3% discount relative to the prior day's market close.

The deal reached its two-year mark in July, setting a service universalization target for 2029. Gesner Oliveira, who served as Sabesp's president between 2007 and 2011, noted that the utility recorded an all-time high annual investment of BRL 15.2 billion in 2025, a 120% increase over 2024. Oliveira estimated that sanitation investments could add BRL 330 billion to Brazil's gross domestic product by 2060 and create 4.6 million jobs.

Critics of the transaction have raised operational concerns. José Faggian, president of the union Sintaema, stated that service delivery deteriorated after the sale, citing dirty water incidents and management focused on financial returns rather than sanitation expertise.