Title: PPIAF Supports a Water Utility in Brazil’s Frontier Region

Language: English

Type: Document

Nature: Report

Published: April 1, 2011

Region: Latin America and Caribbean

Country: Brazil

Sector: Water and Sanitation

Keywords: Knowledge Lab, PPIAF, Water

Document Link(s):


Document Summary:

PPIAF’s Sub-National Technical Assistance (SNTA) provided technical assistance in 2010 to help the Brazilian water utility (DESO) prepare financial projections and a credit memorandum on the company.This support helped DESO to secure a BRL 18.9 million financing by substantially improving the company’s ability to interact with financiers.

Document Details:

The water company owned by the Brazilian state government of Sergipe (“DESO”) had gone through several years of mismanagement when, in early 2007, the state government decided to hire professional managers to run the company. Although the results of the management change were starting to show, the company still did not have access to commercial sources or to local development finance institutions. DESO could not adequately demonstrate the impact of the financial and operational turnaround being implemented to the potential financiers. Furthermore, they did not have sufficient capacity or experience to prepare a forward-looking view that investors and financiers would normally request.

Updated: June 16, 2022