Basic sanitation is one of Brazil's biggest structural challenges. For decades, the expansion of treated water and sewage services has progressed unevenly, leaving millions of Brazilians on the margins of an essential right to health and dignity. It was in this context that, in 2020, the new Legal Framework for Sanitation was created, with the intention of promoting the universalization of services by 2033.
Five years after the enactment of Law No. 14.026/2020, it is time to analyze the practical impacts of this legislation. What has changed in the reality of municipalities? Have the investments materialized? And what obstacles remain to make universal access a reality?
What is the Legal Framework for Sanitation?
The Legal Framework for Sanitation, established by Law No. 14.026/2020, represents a significant update to Brazilian legislation on basic sanitation, complementing Law No. 11.445/2007.
Its main objective is to achieve, by December 31, 2033, the universalization of sanitation services, ensuring that 99% of the population has access to drinking water and 90% to sewage collection and treatment.
To achieve these ambitious goals, the law introduced several innovations:
- Mandatory bidding processAll contracts for the provision of sanitation services must be preceded by a bidding process, promoting competition and seeking greater efficiency in the provision of services.
- Proof of economic and financial capacityOperating companies must demonstrate the financial capacity to meet the established goals, ensuring the viability of the projects.
- Strengthening regulationThe National Water and Basic Sanitation Agency (ANA) has been given the authority to issue reference standards for the regulation of sanitation services, promoting greater uniformity and legal certainty in the sector.
- Incentive for regionalizationThe law encourages the formation of regional blocs of municipalities for the provision of services, aiming for economies of scale and economic viability, especially in locations less attractive for private investment.
These measures not only promote the modernization of the sanitation sector, but also aim to structure it in a way that attracts investment, enabling the efficient and universal provision of services throughout the country.
This progress directly contributes to the implementation of constitutional norms aimed at reducing social and regional inequalities — one of the fundamental objectives of the Federative Republic of Brazil, as provided for in Article 3, item III, of the Federal Constitution.
Furthermore, the regionalized and coordinated organization of sanitation services directly aligns with Article 43 of the Constitution, which authorizes the coordinated action of the Union in complex geoeconomic and social areas to promote balanced development and combat regional disparities.
It also aligns with the guidelines of Article 200, item IV, which assigns to the Unified Health System (SUS) the responsibility of participating in the formulation of policy and the execution of basic sanitation actions, recognizing the close connection between public health and universal access to essential services such as drinking water and sewage treatment.
Progress observed after five years
Since the enactment of Law No. 14.026/2020, the Legal Framework for Sanitation has been promoting a profound transformation in the sector. The new legislation broke with the old model centered on state-owned public companies, which had low levels of investment and slow progress in service coverage. In its place, it established a more competitive environment, with incentives for private sector entry and improved operational efficiency.
One of the main advances was the significant increase in investments. Auctions held in the last five years have generated billions of reais in concessions, with particular emphasis on structuring projects in the states of Rio de Janeiro, Alagoas, and Amapá. According to the Ministry of Cities, between 2020 and 2024, contracts signed under the new rules total commitments of more than R$ 100 billion in investments until 2033.
These contracts were signed with clear goals of expanding coverage, reducing losses in water distribution, and universalizing access to essential services.
Another important development is the growth in private sector participation. Data from the Brazilian Association of Private Concessionaires of Public Water and Sewage Services (Abcon) shows that the presence of private initiative jumped from 5% in 2020 to approximately 30% in 2025. The number of municipalities served by private operators increased from about 300 to more than 1.600, reflecting the success of the new concession models.
In addition to financial resources, there were also gains in governance and regulation. The National Water and Basic Sanitation Agency (ANA), based on Article 21, item XX, of the Federal Constitution—which deals with the Union's competence to establish guidelines for sanitation—began to issue national reference standards. These standards address topics such as tariff regulation, standardization of contracts, and performance indicators, contributing to greater legal certainty and predictability.
By strengthening governance in the sector, the framework also contributes to the effectiveness of public health policies (Article 196 of the Constitution) and the fight against regional inequalities (Article 3, III), which are essential pillars for social development and federal cohesion.
Bottlenecks and obstacles still present.
Despite the progress, significant challenges remain. One of the main obstacles is the difficulty of regionalization in some states, especially in the North and Northeast regions. Many municipalities still resist joining regional blocs, for political reasons or for fear of losing autonomy.
Another critical point is the capacity for oversight and regulation of services. Although ANA establishes national guidelines, the effective application of the rules falls to local entities—such as state and municipal agencies. In many cases, these bodies still lack structure and training.
Furthermore, some state-owned companies are facing difficulties in meeting the economic and financial capacity requirements imposed by law. Some have lost ground in auctions or have failed to renew old contracts, leaving them in a situation of legal uncertainty.
The social issue and the tariff.
Universal access to sanitation services is not just a technical or financial goal—it is a commitment to human dignity. In this sense, one of the greatest challenges is balancing the economic sustainability of projects with the protection of the most vulnerable populations.
Charging fares is essential to maintaining services, but it also needs to be accompanied by subsidy mechanisms and social tariffs. Law No. 14.026/2020 provides instruments to ensure service to low-income populations, but its effective implementation is still uneven across the country.
The role of private initiative and competition for good projects.
The new legal framework has opened the door for strong private sector participation in the sanitation sector. The safer investment environment and clear goals have attracted national and international operators.
Competition in auctions has generated bids with high concession fees and ambitious commitments. However, there are concerns about the risk of over-contracting and the potential failure to meet targets by unprepared or oversized operators.
Ensuring that contracts are well-structured, with achievable goals and effective monitoring mechanisms, is essential to prevent frustration from replacing the expectation of transformation.
Technology and innovation as allies.
The pursuit of efficiency and universal access to services inevitably involves the incorporation of new technologies. Real-time monitoring, georeferencing, telemetry, and smart distribution networks are already a reality in some private and public operations.
Furthermore, the use of decentralized solutions — such as local or individual wastewater treatment systems — can be a viable alternative in rural areas and hard-to-reach regions, reducing costs and expanding coverage.
The role of municipalities and the importance of local governance.
Even with a national framework, the realization of advances in sanitation depends on coordinated action between the federal government, states, and, especially, municipalities. It is up to the municipalities to plan, contract, and oversee the services, even if through regional blocs or public consortia.
Strengthening local governance, with technical and institutional support, is essential for achieving the law's objectives. Without planning and capacity building in municipal management, investments will not translate into better services.
The closing thought
The five years since the implementation of the Legal Framework for Sanitation reveal concrete progress in expanding services, attracting investments, and strengthening regulation, but also highlight structural challenges that require technical preparation and strategic vision.
For those who wish to work in this transforming sector, the MBA in Law and Regulation of Sanitation It offers comprehensive training, connected to the current demands of the market. Invest in your career with IDP and be a protagonist in building a fairer and more sustainable Brazil.
References
ABCON SINDCON. The challenges of sanitation after four years of the legal framework. Canal Magazine, May 16, 2024. Available at: https://abconsindcon.com.br/revista-canal/os-desafios-do-saneamento-apos-quatro-anos-de-marco-legal/.
BRAZIL. Constitution (1988). Constitution of the Federative Republic of Brazil. Brasília, DF: Federal Senate, 1988. Available at: https://www.planalto.gov.br/ccivil_03/constituicao/constituicao.htm.
BRAZIL. Law No. 14.026, of July 15, 2020. Updates the legal framework for basic sanitation. Official Gazette of the Union: section 1, Brasília, DF, July 16, 2020. Available at: https://www.planalto.gov.br/ccivil_03/_ato2019-2022/2020/lei/l14026.htm.
BRAZIL. Ministry of Cities. Legal Framework for Sanitation. Available at: https://www.gov.br/cidades/pt-br/assuntos/saneamento/marco-legal-do-saneamento.
ORTEGA, Fernanda Boaventura. The impact of the 5th anniversary of the Legal Framework for Sanitation: Advances, challenges and opportunities. Consultor Jurídico, São Paulo, February 20, 2025. Available at: https://www.conjur.com.br/2025-fev-20/o-impacto-dos-cinco-anos-do-marco-legal-do-saneamento-basico-avancos-desafios-e-oportunidades/.
