By Brazil Stock Guide Companhia Pernambucana de Saneamento, known as Compesa, signed a cooperation agreement with France’s Agence Française de Développement, or AFD, to finance the modernization and expansion of drinking water production in Brazil’s northeastern state of Pernambuco. The deal involves €200 million, about 1.2 billion reais, aimed at improving water access for roughly five million people.
The partnership comes as Pernambuco restructures its sanitation framework, with Compesa repositioned primarily as a bulk water producer responsible for abstraction, treatment and delivery to distribution concessionaires.
Pernambuco has long faced structural challenges in water supply, including high distribution losses, intermittent service and sharp regional disparities. The AFD financing will support 23 subprojects under the +Água Pernambuco program, structured around three pillars.
The first focuses on expanding water availability through new abstraction points and upgrades to existing systems. The second pillar addresses resource preservation and climate adaptation, including loss reduction, automation, telemetry and energy efficiency measures. The third pillar supports Compesa’s institutional transformation, with technical assistance, studies, audits and governance strengthening.
Compesa Chief Executive Officer Douglas Nóbrega said the company already has detailed execution plans covering new pipeline systems, modernization of infrastructure and automation of pumping and lifting stations. “From now on, it’s hands-on work to execute and deliver the projects,” he said.
Dominique Hautbergue, AFD’s director in Brazil, said the partnership reflects a shared priority. “By working in an integrated way, we move forward on a common goal: reducing inequalities in access to water and sanitation and strengthening the sector’s resilience to climate risks,” he said.