AySA privatization halted by court injunction to protect water service standards

The La Plata Chamber of Appeals has upheld an injunction against the privatization process of Agua y Saneamientos Argentinos (AySA), the utility provider for the Buenos Aires Metropolitan Area. The ruling, which follows a challenge by the Buenos Aires Provincial Ombudsman, prohibits the company from modifying, reducing, or altering essential obligations regarding water supply, public health, and environmental standards.

The court decision effectively freezes the application of new concession contracts that would have allowed for lower quality standards under a private operator. While the injunction does not halt the sale of the 90% state stake—a process the national government expects to generate approximately $450 million—it mandates that any new management must maintain current service levels and environmental protections.

The case has been transferred to federal jurisdiction, meaning the ultimate continuity of the privatization process will now be determined by federal courts.