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MAKING WATER AND SANITATION AFFORDABLE AND SUSTAINABLE
COPANOR-COPASA
MINAS GERAIS WATER SANITATION
W
hile Minas Gerais is located in Brazil’s most developed region – the Southeast – COPANOR’s service area covers one of the poorest pockets of
- poverty. Tie semi-arid area serviced
by COPANOR – the Jequitinhonha, Mucuri, São Mateus, Buranhém, Itan- hém, and Jucuruçu valleys combined – averages a Human Development Index (HDI) of only 0.651. Providing cost-efgective services is thus critical, and COPANOR’s innova- tive business model relies on the State Budget to fjnance fjxed cost overhead, meaning that large infrastructure as- sets are not included in COPANOR’s balance sheet. Hence, the company does not need to charge consumers a rate that reimburses the company for those fjxed assets. Rates average only about R$ 13.14 for water and 8.80 for sewage a month per household, depending on the kind of supply and treatment systems used. Moreover, while 8.28 percent of households ser- viced typically do not pay their bills, recent effjciency improvements and stafg reductions have helped the com- pany generate profjts in the amount of R$4,046,000 in 2013. DEPLOYING APPROPRIATE TECHNOLOGIES FOR LOCAL CIRCUMSTANCES COPANOR’s water supply stems from both surface and underground sources – either from surface areas such as streams, rivers, and dams or from wells accessed by either deep tubes or through excavation, where the water supply is shallow enough. Water treatment technologies depend
- n the source, but systems usually use
In 2006, the State Gov- ernment declared its intention to deliver universal water and sewage (W&S) services throughout Northeast- ern Minas Gerais. The following year, the State authorized hold- ing company COPASA to create COPANOR as a separate, wholly-
- wned company in
- rder to plan, design,
implement, expand, remodel, and explore new possibilities for public water supply and sanitation in towns and rural areas in Northern Minas Gerais.
Today, COPANOR – COPASA’s successful and innovative busi- ness model shows that countries can deliver water and sanita- tion services cost efgectively to small towns and rural areas.
