Buenos Aires water company privatized after 20 years of state management

The Buenos Aires water and sanitation utility company, Agua y Saneamientos Argentinos (AySA), has been privatized after 20 years of state management, with a group of Argentine, Brazilian, and Dutch firms acquiring 90% of the shares. The transaction, valued at US$340 million, marks the largest privatization carried out by the Milei administration and the most profitable to date.

The new operators will have full control of the operation starting from January 2027, with the concession contract valid for 30 years and extendable for an additional decade. The company is expected to increase water coverage from 75% to 79% and sewage coverage from 64% to 65% within the first decade. The new management team includes Argentine firm Rowing SA, Brazilian company Arcos Saneamento e Participações, and Dutch firm PHX Aqua AR B.V.

Despite the privatization, the state will retain control over the entirety of the sale, with the new operators required to invest US$1.9 billion in the first five years and US$15 billion over the 30-year concession period.

Brief written by urgent.news from Buenos Aires Herald's own syndicated text. Machine-written — may contain errors; check the original before relying on it.