Sabesp

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Sabesp, short for Companhia de Saneamento Básico do Estado de São Paulo, is a Brazilian company that provides water and wastewater services. Based in São Paulo, it serves residents, businesses, and industries across São Paulo state, covering 363 of the state’s 645 municipalities under long-term concession agreements.

Sabesp handles every step of water and sanitation: drawing water, treating and distributing it, and collecting, treating, and reusing sewage. It also supplies water in bulk to some municipalities that don’t run their own water systems. The company is the largest water and waste management provider in Latin America.

History and ownership: Sabesp was founded in 1973. Its shares began trading on the São Paulo stock exchange in 1996, and over time a substantial portion of the company was privatized. Today, roughly half of its shares are privately owned. In 2006, a law allowed Sabesp to expand to other Brazilian states and internationally, and it has signed cooperative agreements with Spain, Israel, and Costa Rica. The leadership has said it aims to serve all cities in São Paulo state.

Challenges: Sabesp faces significant water losses from leaks and other factors. In São Paulo city, more than 20% of treated water is lost before it can be used by people. Sabesp classifies losses as physical leaks or non-physical losses (such as unmetered use or fraud). To reduce waste, the company rezones the service area in steps, upgrades residential meters, and lowers water pressure to lessen leaks.

The 2014 Water Crisis highlighted problems in management and infrastructure. Aging pipes and an uneven network contributed to shortages, especially in southern São Paulo. While engineers used boosters and pressure-reducing valves as quick fixes, these did not solve the long-term issues. Critics pointed to a lack of transparency and questioned bonuses paid to executives during the crisis.