large variations among utilities. state utilities with the highest collection losses are in the north and those in the center-west and south have consistently good collection ratios. a number of municipal utilities appear to have serious collection problems. investment in 2010-12 total investment in water and sanitation averaged about r$8 billion (us$3.4 billion) per year. the national sanitation plan (plansab) approved in december 2013 foresees investments of around r$15 billion (us$6.8 billion) per year. as of 2005 investments by service providers participating in the national water and sanitation information system snis stood at only 3.55 billion brazilian reals, including 1.53bn for water and 1.35bn for sanitation and 0.67bn for other investments. it has been estimated that investments in water and sanitation infrastructure in the order of r$9.6 billion (us$4.5bn or $24 per capita or 0.7% of gdp) per year, or almost three times the level of 2005, would be needed to achieve universal access. the program for the acceleration of economic growth raised investment levels since then. financing the great majority of investments in water and sanitation in brazil are financed from domestic resources, with some additional financing from international financial institutions. in general, utilities with the greatest need to improve performance and expand services find it hardest to access funding, partially because they do not know how to access funding (including grant funding), partially because of weak institutional capacity, and partially because of their lack of creditworthiness. self-financing. by far the major source of funding in 2004 was self-financing by the utilities, accounting for 1.82bn reals or 51% of all financing. this is a remarkably high share by latin american standards. however, it is less a reflection of financial strength of the utilities, but rather a symptom of a historically low level of investment in 2004. state contributions funded by federal public banks and international financial institutions. the federally owned caixa economica federal and the brazilian development bank bndes both play important roles in financing water supply and sanitation investments in brazil. they administer large public pension funds, such as the fgts, which invest, among others, in water and sanitation. however, loans from the caixa and bndes are not made directly to utilities, but to the states, which in turn pass on funds to the utilities as a non-reimbursable contribution to their capital. loans to state governments from international financial institutions, such as the world bank and the idb, are also passed on to utilities as a non-reimbursable contribution to their capital. the capital market. the financially most solid utilities also tap the capital market directly either through the brazilian stock market or borrow from commercial banks. the state water utility for são paulo, sabesp, is even listed on the new york stock exchange. output-based grants from the federal government. since 2001 the federal government "buys" treated wastewater through an innovative program called prodes, which allows utilities to access federal grants if they properly operate and maintain their wastewater treatment plants. the national health foundation funasa. for small towns and rural areas a major source of funding is the national health foundation funasa under the ministry of health, which has invested 890 million reales in 3,500 municipalities benefitting 11.43 million people between 1995 and 1999, mainly through its programa alvorada. program for the acceleration of growth (pac). in january 2007, the federal government announced a new program for the acceleration of growth (pac) that includes major investments in highways, airports, ports, energy, as well as providing housing, water and sewage that would benefit poor brazilians. the program calls for a total of 504 billion real (235 billion u.s. dollars) through 2010, of which about 205 billion u.s. dollars would be provided by state-owned companies and the private sector, while the rest would come from the federal government. external cooperation the most important external partners supporting the development of the brazilian water and sanitation sector are the inter-american development bank (idb), the world bank and japan. germany is also an important partner in some states. support is provided in terms of financing as well as analytical and advisory activities. inter-american development bank approved on november 30, 2005, the us$140 million loan provides for sanitary infrastructure and institutional strengthening in the educandos-cuarenta basin. br0324 : ceara sanitation program approved on november 26, 2003, the us$100 million loan aims to improve the sanitary and environmental conditions of the state of ceará. goiania water and sanitation approved on july 17, 2002, the us$47.6 million loan aims to improve water supply and sanitation in the city of goiania. br0269 : social program water sewerage small municipal approved on october 17, 2001, the us$100 million loan provided for the construction of water and sewerage systems in communities for low-income communities of up to 75,000 inhabitants where hdi is below the national average. br0345 : federal district sanitation program approved on december 6, 2000, the us$130 million loan aims to improve potable water and sewerage services, institutional efficiency, financial sustainability, private sector participation in management and investment financing for the federal district of brasília. br0265 : tiete river decontamination, stage ii approved on october 20, 1999, the us$200 million loan aims to improve the environmental quality of the tiete river basin in the sai paulo metropolitan region. world bank loans. loans provide not only infrastructure financing, but also policy advice and capacity building in order to improve the institutional framework for improved service delivery. dedicated water and sanitation loans municipal adaptable program lending phase 1: uberaba approved on march 21, 2007, the us$28.78 million loan aims to promote better living conditions for the uberaba municipality through the integration of several components, including, flood protection (41%), sewerage (31%), and water supply 15%. brasilia environmentally sustainable project approved on august 25, 2005, 70% of the us$159.04 loan aims at financing water, sanitation, and flood protection sector. espirito santo water & coastal pollution management approved on july 1, 2004, the us$62.3 loan is aimed at improving sewerage (75%) and water supply (15%) in the state of espirito santo. water sector modernization project (02) approval march 5, 1998, the us$300 million loan aims to improve the sewerage (53%) and water supply (36%) sectors. other loans with water and sanitation components additional financing for the rural poverty reduction project - pernambuco approved on october 19, 2006, the us$40 million loan aims at financing basic social and economic infrastructure, including, water supply (15%). bahia poor urban areas integrated development approved on december 6, 2005, the us$82.2 million loan aims at reducing urban poverty in a sustainable manner in the city of salvador as well as other cities in the state of bahia. the water, sanitation and flood protection sector receives 25% of the loan. rural poverty reduction project - minas gerais approved on september 6, 2005, the us$46.8 million loan aims to assist the state of minas gerais to reduce high levels of poverty through several aspects, including, improvement of sewerage infrastructure (20%). ceara multi-sector social inclusion development approved july 12, 2005, the us$649 million loan aims to strengthen social inclusion in the state of ceará through 24% of expenditures in water, sanitation, and flood protection. amapa sustainable communities approved on december 7, 2004, the us$6.81 million loan aims to reduce urban and rural poverty through 25% expenditures in the water, sanitation, and flood protection sector. integrated municipal project - betim municipality approved on july 1, 2004, the us$49.07 loan aims to assist the betim municipality in improving sewerage (40%). recife urban upgrading project approved on april 24, 2003, the us$84 million loan seeks to enhance urbanization by improving water supply (30%) and solid waste management (30%). technical assistance, analysis and advice: low income sanitation technical assistance project - prosanear - tal japan sanitation improvement project for the baixada santista metropolitan region approved on august 6, 2004, the 21.32 billion yen loan finances the improvement and expansion of the sewage system and the development of an environmental monitoring system and improved water quality. the japan bank for international cooperation (jbic) is the loaning agency. germany germany supports water supply and sanitation projects in small and medium towns of the mostly poor and arid north-east of brazil, as well as in the metropolitan area of belo horizonte.