Water is an essential natural resource. However, due to an increase in water demand as a result of population growth and economic development, there will be more and more areas where water will become scarce. According to the Organization for Economic Co-operation and Development (OECD), water demand is projected to increase by 55% between 2000 and 2050 and, in 2050, 240 million people will have no access to clean water and 1.4 billion people will be without access to basic sanitation. Our Group conducts its business around the world, including in highly water-stressed areas. Fully recognizing the finiteness of water resources, we approach relevant issues both in terms of risk and opportunity through our efforts to reduce water consumption, improve efficiency, and establish water infrastructure.
While water demand is expected to increase on a global basis as a result of population growth, urbanization and industrialization, the infrastructure environment to ensure the supply of safe and hygienic water has not been improved and water issues are expected to become even more serious. In response, in the 21st century, water business that aims to address water issues has started attracting people's attention globally. Increasing awareness that developed countries are responsible for contributing to achieving a safe and hygienic living environment in developing countries has also contributed to the increased attention to water business. We regard water business combining water supply and sewerage systems as an important pillar of social infrastructure. Based on this recognition, we are engaged in various business projects around the world. We have been expanding our water business from BOOT and BOO business*1 using private-sector capabilities*2, such as water and sewage treatment and seawater desalination, to fully privatized business in promising markets around the world, including areas with rapidly increasing water demand. We have realized substantial achievements in these business areas. We will continue to take on challenging issues in globally expanding and multifaceted water business by supplying safe and secure water using Japanese technology and responding to the demand for reducing social costs by using private capital.
- BOOT (Build–Own–Operate–Transfer) is a form of providing services under a long-term contract with the public sector and, after the contract period, transferring the business assets to the public sector.
BOO (Build-Own-Operate) is a form of providing services under a long-term contract with the public sector as in BOOT but the assets will be maintained by the business operator.
- Use of private-sector capabilities: Use of business operation capabilities and funds of the private sector for business projects that have traditionally been conducted and financed by the public sector to increase efficiency
Water Business in Brazil
We hold shares in BRK Ambiental, the largest private water supply and sewerage company in Brazil, with 23 subsidiary companies engaged in water supply and sewerage and industrial water treatment, and have been involved in water business in Brazil. Due to the low penetration rate of water supply and sewerage systems in Brazil, infrastructure needs to be established and relevant business operations need to be improved. The aim of our business project is to provide services of water supply and sewerage in about 100 municipalities in 13 provinces with about 15 million residents in Brazil. We contribute to expanding the use of water supply and sewerage systems and improving their operational quality in Brazil with high quality Japanese operational know-how and technology. We use our expertise gained through our extensive experience in water business and send our knowledgeable employees to operate water business in Brazil. We consider that the stable provision of water infrastructure contributes to improving the regional water environment and furthermore developing regional communities.
(ref) Providing safe and secure access to water resources around the world