AySA privatization: Two consortia bid for Argentine water utility

The Argentine Ministry of Economy has opened technical bids for the privatization of Agua y Saneamientos Argentinos (AySA). The process involves selling 90% of the state-owned company's shares to a strategic operator, while 10% will be held by employees through a participatory ownership program.

Two main consortia have submitted proposals. The first includes Rowing S.A., Arcos Saneamento e Participações, Transclor, and the Netherlands-based investment vehicle PHX. The second is led by Roggio ROAS S.A.U. Notably, Transclor is an existing supplier of essential chemicals for water purification to AySA, raising questions regarding future procurement and contract management.

The winning operator will be required to execute a significant investment plan. For the 2027-2031 period, investments are projected at 2.89 trillion pesos (at December 2025 values). The contract sets specific coverage targets: by 2031, water service coverage must reach 75.3% and sewage 63.9%, with long-term goals of 90% for water and 75% for sewage by the end of the 30-year concession. Tariffs are expected to remain constant in real terms during the first five-year cycle, subject to annual oversight by the ERAS.