Within the framework of the privatization of Argentine Water and Sanitation Corporation S.A. (“AySA”), pursuant to Law No. 27,742 (the “Foundations Law”) and Decree No. 494/2025, the Ministry of Economy published Resolution No. 704/2026, authorizing the call for national and international public tender offers for the acquisition of ninety percent (90%) of AySA’s shares held by the National Government (the “Tender”), and approved the Bidding Terms and Conditions (the “Tender Documents”).
The remaining ten percent (10%) of the share capital is owned by the company’s employees participating in the Participated Ownership Program (Programa de Propiedad Participada) governed by Law No. 23,696.
Moreover, on April 27, 2026, the Ministry approved, through Resolution No. 543/2026, the form of concession agreement to be entered into between the National Government and AySA (the “Concession Agreement”).
The main aspects of the Tender and the Concession Agreement are as follows:
1. Purpose of the Tender
The Tender seeks to transfer 90% of AySA’s share capital held by the National Government and to appoint a new operator under a long-term concession scheme.
2. Preliminary Tender Schedule
The Tender’s preliminary schedule provides that bids must be submitted by August 27, 2026, at 10:00 a.m., and that inquiries may be submitted until August 12, 2026, at 10:00 a.m.
3. General Terms of the Tender
The Tender is a national and international multi-stage process, requiring bidders to submit their bids in two envelopes. The first envelope will contain documentation proving compliance with legal, financial, and technical requirements, while the second envelope will contain the economic offer.
The offer shall consist of a bid submitted by individuals or legal entities, whether individually or jointly, duly registered in the Contrat.Ar system, and shall include a bid maintenance guarantee in the amount of USD 25,000,000. The successful bidder must incorporate a local corporation, acting as Strategic Operator, prior to the execution of the share purchase agreement.
The Tender will be awarded to the bidder who complies with the legal, financial and technical requirements and has submitted the highest economic offer in US dollars. In the event that the bids of two or more bidders are identical, they will be requested to improve their bids.
4. Form of Concession
The form of concession agreement provides for a 30-year term, renewable once for an additional 10 years subject to compliance with AySA’s obligations and establishes a tariff regime based on ordinary and extraordinary tariff reviews, periodic adjustments, and recognition of operating costs, investments, and cost of capital. The agreement also requires AySA to grant performance guarantees linked to pending investments and authorizes the assignment, as security, of credit rights arising under the Concession Agreement in favor of creditors.
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For further information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Milagros Piñeiro, Macarena Becerra Martínez, Nair Ivanoff Ravnensky, Victoria Barrueco, Sol Villegas Leiva, María Paz Albar Díaz, Manuel Crespi, or Fermín Bartos.