Background on Agua y Saneamientos Argentinos (AySA)
Agua y Saneamientos Argentinos (AySA) is a state-owned company responsible for providing water supply and sewage services in Argentina. With a significant portion of the country’s population relying on its services, AySA plays a crucial role in maintaining public health and sanitation.
Government’s Decision to Privatize AySA
In July 2023, the Argentine government authorized the privatization of AySA by selling 90% of its state-owned shares to the private sector. This decision was announced through Resolution 1198/2025, published in the Official Gazette.
Timeline and Process
The government has set an eight-month timeline for the privatization process, during which AySA’s remaining state shares will be sold in local stock exchanges and markets. The Ministry of Economy has tasked the Agency for the Transformation of Public Companies with hiring a public banking entity to assess AySA’s share package.
Ensuring Continuity of Services
The government has emphasized that the privatization will not affect the ongoing public service of providing clean water and sewage collection. This assurance aims to maintain public trust and confidence in AySA’s ability to deliver essential services.
Impact on Argentine Population
AySA serves approximately 6.5 million inhabitants across Buenos Aires Province and parts of Córdoba, La Pampa, and Santa Fe provinces. The privatization could potentially impact service quality, pricing, and accessibility for these residents.
- Service Quality: Privatization may lead to increased investment in infrastructure and technology, potentially improving service quality. However, there is also a risk of reduced maintenance due to cost-cutting measures.
- Pricing: The introduction of market forces might result in higher prices for water and sewage services, which could disproportionately affect low-income households.
- Accessibility: Privatization could lead to uneven service distribution, with private companies prioritizing more profitable areas while neglecting less lucrative regions.
Key Players Involved
The Argentine government, through the Ministry of Economy and the Agency for the Transformation of Public Companies, is leading this privatization process. A public banking entity will be responsible for assessing AySA’s share package, ensuring a fair valuation.
Key Questions and Answers
- What is Agua y Saneamientos Argentinos (AySA)? AySA is a state-owned company providing water supply and sewage services to millions of Argentines across several provinces.
- Why is the Argentine government privatizing AySA? The government aims to improve service quality, attract private investment, and modernize AySA’s infrastructure through this privatization process.
- What are the potential impacts on consumers? Privatization could lead to higher prices, uneven service distribution, and potential reductions in maintenance efforts.
- Who is responsible for the privatization process? The Argentine government, specifically the Ministry of Economy and the Agency for the Transformation of Public Companies, is leading this process.
- What assurances has the government provided regarding service continuity? The government has stated that privatization will not affect the ongoing public service of providing clean water and sewage collection.
