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Water, Water, All Aground | Politics of Hydropower


When you want to spot emerging trends, always follow the money. Today, many of the world’s leading investors and most successful companies are making big bets on water. Do a little research, and it’s easy to see why. There simply isn’t enough freshwater to go around, and the situation is expected to get worse before it gets better.About.com

Water, sewer and power — and multiple cases of alleged corruption in those spheres — will figure prominently in the election season to come.

It  remains to be seen how much the current  drought — the Serra da Cantareira reservoir is in the mid-teens of its full capacity and carbon-fueled generators are powering up  — and  measures that could avoid threats to electricity supply will bedevil the state government.

The situation will likely draw a parallel with the massive power outages of 2001, blamed for the defeat of Lula, and hold SABESP up as an example of the evils of privatization. The opposition will push for an investigation of commuter rail contracts with the Sambodian statehouse.

It always astounds me, the lack of coordinated communication in the Alckmin administration. Back home, the SEC fines companies who fail to communicate clearly with shareholders.

I think it is likely the confusion reported here by Valor here has to do with a journalistic jihad to quell the other current election-year scandal: Cartel formation among powerful foreign passenger rail contractors in Sao Paulo, with associated bribery –and a major construction failure in 2007, let us not forget the Great Smoking Hole of Sambodia.

Source: Valor Econômico.

SÃO PAULO  –  After informing the press yesterday that it would soon announce an adjusted price structure for the state water and sewer agency — SABESP — set by the state agency water and power — has reversed course after releasing the announcement. No statement was forthcoming as to why government decisions on the topic were not published in the Official Diary today.

Today, the state Official Diary contained nothing on the topic.

Reached by journalists, the public relations department of Arsesp confined itself to responding via e-mail: “No adjustment has been determined. At the moment, we have no plans.”

The Arsesp e-mail, which announced the publication of the fare restructuring, was later taken down from the agency’s Web site.


Arsesp had planned to publish the information in question on its Web site, around 8:00 p.m. A note issued by the agency, the restructuring will appear in today’s state-published Diário Oficial do Estado de São Paulo.”

Expectations regarding the decision influenced trading in SABESP stocks yesterday, where it was among the leading losers of the day —  up 2.5%, to R$ 20.90.

Based on the Arsesp report regarding the maximum percentage of legally allowed readjustments, Sabesp must inform the market in hard numbers how much it plans to invest in its new fare structure. Expectations are that the company will invest the entire of income from fares, a plan that ARSESP will approve.

Lacking the announcement by ARESP and therefore unable to predict future developments, SABESP opened yesterday’s session sharply down. Not long after, SABESP shares plummeted 6.46% (the largest loss on the Bovespa that day), paying R$ 19.55. The principal stock index fell 0.81%, at 50,712 pontos.