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Frost & Sullivan: The Brazilian Municipal Water and Wastewater Treatment Market Set to Double Within the Next Seven Years
Date:2/25/2009

LONDON, Feb. 25 /PRNewswire/ -- The Brazilian Municipal Water and Wastewater Treatment Market has been experiencing strong growth since 2004. However, 80% of the country's population still needs to be connected to sewage treatment facilities. To remedy this, the Brazilian government has launched Programa de Aceleracao e Crescimento (PAC), an investment programme aimed at financing municipal water and wastewater projects. The Brazilian government has set lofty goals; it plans to reach 80% population coverage in the next seven years and hopes to achieve 100% coverage by 2020.

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Frost & Sullivan estimated the market size of the Brazilian Municipal Water and Wastewater Treatment Market to be about $126 million in 2008, and expects it to double over the next seven years largely due to substantial investments directed toward setting up and upgrading sewage facilities.

"The focus in the next couple of years will be on setting up adequate sewage treatment facilities in state capitals and large cities, which will then be followed by investment on treatment facilities for the large number of small and medium sized towns and cities," says Fredrick Royan, Research Manager, Environment (Water) Markets, Frost & Sullivan. "The investment over the coming years coupled by stringent new legislation on sewage treatment is particularly expected to offer opportunities for biological secondary treatment, nutrient removal systems and also sludge treatment systems."

International institutions such as World Bank are contributing to investments made by federal and local governments. These institutions are collaborating to achieve one of the key United Nations Millennium Goals of Safe Drinking Water and Basic Sanitation for the entire Brazilian population by 2015.

Despite recent successes and its optimistic future, the Brazilian Municipal Water and Wastewater Treatment Market still faces a few challenges. First, political volatility affects the rhythm of investments, slowing construction and causing instability in the markets. Additionally, criteria enforced by the government to work with the public sector create a barrier for smaller companies to enter the market. These criteria include a good track record, clean finances and a large reference list, things that most new companies lack. Also, since environmental legislation is enforced at the state level, the varying degrees of enforcement to which nationally created legislation is enforced affects expansion plans of companies and the development of the market. Finally, end-users are very price sensitive and tend to prefer "home-grown" locally created solutions over relatively expensive innovative solutions supplied by multinational companies.

For more information about the Brazilian Municipal Water and Wastewater Treatment Market and to receive a complimentary presentation, please contact Chiara Carella at chiara.carella@frost.com.

GIL 2009: Europe

Frost & Sullivan has expanded its flagship Global Congress on Corporate Growth - GIL Global - into several major cities around the world including London. For the first time ever in Europe, Frost & Sullivan will be hosting the Growth, Innovation and Leadership Congress 'GIL 2009: Europe' on 19-20 May, at the Sofitel St James in London. GIL Global is the industry's only event designed to support senior executives in their efforts to achieve sustainable, top-line growth. To register, obtain a programme agenda, explore sponsorship opportunities, or attend as a member of the media for GIL 2009: Europe, please contact Chiara Carella, Head of Corporate Communications for Frost & Sullivan in Europe, at chiara.carella@frost.com. One-on-One interviews with Frost & Sullivan senior growth consultants are also being scheduled. For more information you can also visit www.frost.com/giluk

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com .

    Contact:
    Chiara Carella
    Corporate Communications
    P: 0044 (0) 207 3438314
    E: chiara.carella@frost.com
   http://www.frost.com


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