Brazil needs to invest 70 billion Brazilian reais ($42 billion) by 2015 to guarantee water supplies to its major cities and treat its waste, the country's national water agency said Tuesday.
Although Brazil has one of the world's largest reserves of fresh water, inadequate water and sewage treatment facilities means more than half of Brazil's cities may see water shortages by 2015, ANA said on its website. The country will need to invest BRL22 billion by 2015 in water distribution systems to ensure supply through 2025. The country needs another BRL47.8 billion for sewage systems in order to ensure future usability of its water sources.
Brazil is in the midst of massive infrastructure investments in transportation, energy, health and sanitation, part of the government's so-called Program to Accelerate Growth. But the drive to boost investment comes as above-target inflation worries policy makers and as the government promises to reduce spending at the federal level to ease price pressures.
Brazil's southeast, the richest and most densely populated region of the country; and the northeast, the fastest growing and driest region of Brazil, are where the needs for investment in water supplies are concentrated.
Southeastern cities such as Sao Paulo and Rio de Janeiro, the country's biggest, need to find new sources of water and improve their distribution system, projects that will necessitate BRL7.4 billion in investment.
In the northeast, the country needs to invest BRL9.1 billion in more urban areas, with another BRL6.4 billion needed for the semiarid inland region, ANA said.
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