The Executive modified more than 100 articles of the Argentine Water and Sanitation Framework, granted more power to the concessionaire and laid the basis for the incorporation of private capital.
In a new step towards Argentine water and sanitation privatization (AYSA), The National Government published on Tuesday the Decree 493/2025whereby he replaced the current regulatory framework and authorized, for the first time in almost two decades, the MORA SUPPLY. The DNU, disseminated in the Official Gazette, substantially reconfigures the rules of the water and sewer service in the metropolitan area, with the objective – according to the text – to attract private investments and improve the operational efficiency of the company.
“The current structure is insufficient to respond to the growing demands for coverage, quality and sustainability,” argues the decree in its recitals, within the framework of a “deep economic crisis” that prevents the State from continuing to subsidize the system.
Cut due to lack of payment and more powers for the concessionaire
One of the central changes of the decree is the express authorization to Aysa to interrupt the drinking water service to users in Moraaccording to the conditions that will be established in the concession contract. In addition, they were granted “broad powers to audit the works within the regulated area ”, as well as the possibility of constituting guarantees with the income of the concession to support external financing.
A new relation of relations between regulatory entities was also established. He Eras (water and sanitation regulator) and the Planning Agency (APA) They must cooperate and may be summoned by the concessionaire or the user union in the face of technical or operational issues that merit it.
The decree also creates the Strategic Improvement Master Plana technical instrument that will be elaborated by appa and revised every five years. Its objective is to identify the priority works to extend the service based on criteria for technical viability and population density. Although it will not be binding, it will serve as a guide for investment planning by the future concessionaire.
“It is pertinent to adopt measures that allow to urgently make the necessary investments and guarantee the sustained improvement in the conditions for the provision of the public service of drinking water and sewage drains,” holds the presidential decree.
AYSA corporate reconfiguration
With the modification of article 2 of Decree 304/2006, the Executive left without effect the non -transferable nature of the State’s actions in society. From now on, the 90% of Aysa’s share capital is in the hands of the Ministry of Economywhich can dispose of your participation totally or partiallyand the 10% remaining belongs to employees adhered to the participated property program.
Likewise, a period of five years as a transition period From the eventual award to the new concessionaire, during which the new regulatory regime will be progressively applied to avoid mismatches in the economic-financial equation of the contract.
AySA increase
Keys of Decree 493/2025
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The supply cut is authorized due to lack of payment.
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AYSA may use concession income as a financial guarantee.
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Share capital is reconfigured and partial or total privatization is allowed.
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Institutional cooperation between Eras and appa is established.
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A technical principal plan is created to guide the expansion of the service.
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More than ten articles of the previous framework are eliminated and more than one hundred are modified.
The text was signed by the president Javier Mileiin general agreement of ministers, and notified to the Permanent Bicameral Commission of Congressas required by Law 26.122.
Source: Ambito
