Argentina advances privatization of AySA water utility

The Argentine government is advancing the privatization of Aguas y Saneamientos Argentinos (AySA). The plan involves a bidding process to transfer 90% of the company's shares to private consortia under a 30-year concession, which may be extendable for an additional decade.

The service provides water and sanitation to more than 15 million users in the Autonomous City of Buenos Aires and 26 municipalities in the Greater Buenos Aires area. The proposed measure includes the total removal of state subsidies, transferring infrastructure costs to user tariffs, and authorizing supply cuts for non-payment.

The process faces legal challenges, including an injunction filed by the Buenos Aires Ombudsman's Office citing a lack of public hearings and transparency. In response, the National Government has appealed the resolution.