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Water Charges in Brazil

The Ways Forward

image of Water Charges in Brazil

This report examines the current system of water abstraction and pollution charges in operation in Brazil. It assesses the current system’s implementation challenges and provides possible solutions. The report explores how water charges can be both an effective means for dealing with water security issues, and a tool for enhancing economic growth and social welfare. Specific analysis is put forward for three case studies in the State of Rio de Janiero, the Paraiba do Sul River Basin and the Piancó-Piranhas-Açu River Basin. The report highlights that water charges need to operate in conjunction with an effective water regulatory regime and concludes with an Action Plan based on practical steps and recommendations for its implementation in the short, medium and long-term.

 

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The Piancó-Piranhas Açu River basin

In the Piancó-Piranhas Açu River basin demand for water exceeds supply. Human consumption and irrigation draw heavily on available resources, which are constrained due to drought and intermittent rivers and pollution from domestic sewage. The institutional framework and governance structure for water charges in this area are under development, including strengthening stakeholder participation into the basin committee’s activities and the awareness raising around water scarcity. The São Francisco River’s water transfer project (Projeto de Integração do Rio São Francisco, PISF) is paving the way for a concrete discussion on the implementation of water charges as they would impact of user behaviour and raise revenue for water management.

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