AySA privatization enters final stage amid legal challenges in Argentina

The Argentine government is entering the final stage of privatizing Agua y Saneamientos Argentinos (AySA), a state company providing water and sewage services to 14 million people in the Buenos Aires metropolitan area. Two consortia have advanced to the final round to compete for 90% of the company's shares. Economic proposals are expected to be revealed this week, though reports suggest bids may fall below the USD 500 million target set by the Ministry of Economy.

Simultaneously, the privatization process faces legal challenges. National legislators from the Unión por la Patria party have filed a lawsuit and a complaint with the Administrative Investigations Prosecutor's Office (PIA). They are seeking to halt the sale and demand transparency regarding the official valuation of AySA. The legislators allege that the government has improperly reserved valuation reports and modified appraisal methods through Resolution ATEP 1/2026, which they claim violates public information access laws and prevents legislative oversight of national assets.