BR WATER S.MOD.2

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The Second Water Sector Modernization Project strengthens regulation; increases private sector participation in investment and management; improves the overall efficiency of Brazil's water supply and sewerage (W&S) sector; and increases coverage of W&S services while improving the quality of water bodies located in states and municipalities served by participating utilities. The project has four components: 1) financing the costs of goods and consultant services needed for day-to-day management of project implementation and the promotion and dissemination of project experiences; 2) financing technical assistance to support programs by the federal, state, or municipal governments aimed at institutional and regulatory reform of the water sector; further developing sector programs and data banks; developing and implementing a utility rating data base and a yardstick regulation system; environmental management programs; and studies and sector planning at the local level. This component also supports institutional reform programs. The third component finances unaccounted-for water control subprojects and other small but profitable operational, financial, and administrative actions in water utilities. It finances consultant services, goods, and works needed to support supply and installations; reviews and updates commercial cadastres and commercial, financial, accounting, and information systems; decentralizes operations and management; and funds marketing and communications.