Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp's Competitiveness

Competition in the sanitation sector primarily occurs through mandatory public tenders for new or renewed concessions under Brazil's legal framework (Law No. 14,026/2020). This framework has increased bidding activity between state-owned and private operators. The company holds a regional concession serving 371 municipalities within URAE-1. Outside this area or in municipalities not adhering to the concession, tenders may be held where the company may face competitors or choose to participate, including opportunities beyond the State of São Paulo. The company also competes for water and sewage service concessions in various regions outside São Paulo. Under the New Legal Framework for Basic Sanitation, municipalities are required to conduct bidding processes to hire sanitation service providers, fostering competition among state-owned and private firms. The company operates through subsidiaries both within Brazil and internationally and positions itself as a potential competitor to other sanitation companies, domestic and foreign. Additionally, private companies have begun offering customized water treatment solutions, contributing to increased competition in that segment.