Why invest in sanitation in Brazil?

• Every million reais invested in sewerage works generates 30 direct and 20 indirect jobs, in addition to the permanent jobs generated when the system becomes operational. If the annual R$11 billion needed by the sanitation sector is actually invested, around 550,000 new jobs are expected to be created in the same period;
• Access to a sewerage system increases workers’ productivity and income by 13.3%.
• Universal access to a sewerage system is expected to increase the real wage bill, which currently stands at R$1.1 trillion, by 3.8%, pushing up income by R$41.5 billion per year.
• Universal access to a sewerage system could also push property prices up by an average 18%.
• Total property appreciation could reach R$74 billion, 49% more than the cost of the sanitation works, which are estimated at R$49.8 billion (considering new connections only).
• In the long term, access to a sewerage system would imply an increase in municipal property tax (IPTU) revenue in the same proportion as the increase in average property prices, representing an estimated gain estimated of R$385 million per year, while revenue from property transfer tax (ITBI) is expected to climb by more than R$80 million per year.

The importance of providing universal access to sanitation services goes beyond the question of supply and represents a direct impact in Brazil´s economy, public health and its management of natural resources. Given its influence over the health of the population, it has an essential role to play in formulating preventive public policies for the sector. From an environmental standpoint, the proper management of the water cycle represents one of the most important factors affecting ecological stability and the prevention of natural disasters.

Disease reduction in Campo Grande (*)

(*) Source: Campo Grande Municipal Department of Health

Source: Survey of the Economic Benefits of Expanding Sanitation in Brazil – Instituto Trata Brasil /FGV, 2010.