Copasa faces competition as three Minas Gerais cities seek operators

Following Copasa's privatization in June 2026, three municipalities in the state of Minas Gerais are launching tenders to replace the utility. Lavras, Alpercata, and Ipatinga are opening water and sewage services to private bidding. Equatorial won Copasa's privatization process, acquiring control of up to 30% of the sanitation company, while the state government retained veto powers over strategic decisions.

In Lavras, home to more than 109,000 residents, the municipal administration terminated its contract with Copasa to launch a municipal concession. The project requires approximately BRL 257 million in investments. Bids will be evaluated on the highest tariff discount combined with the highest concession fee, with proposal openings scheduled for October 26.

Alpercata's prior contract with Copasa expired, leading the city to launch a 35-year concession demanding BRL 33 million in capital expenditure and a minimum concession fee of BRL 1.8 million. After an April 29 tender drew no bidders, the city republished the notice in August. Bid submissions are scheduled for Friday, October 9, followed by an auction on Thursday, October 15.

Ipatinga presented a 35-year concession project in July at the B3 exchange in Sao Paulo, aiming to replace Copasa's current services. The project outlines BRL 455.3 million in investments and sets a minimum concession fee of BRL 95.77 million.

To counter municipal departures, Copasa has offered alternative contract renegotiation terms. These proposals include advance funding for municipal sanitation funds alongside required capital expenditure and universal service targets.