Aguas Argentinas a recently formed consortium of private companies wins a 30-year concession to operate Buenos Aire’s water utility. It is awarded the concession because it promised a greater reduction in wet rates than the other bidders. But it was close. Aguas Argentinas’s bid was 26.9 percent just a fraction higher than the bid of another affiliate. Aguas de Buenos Aires which offered a rate change magnitude of 26.1 percent. According to the concession agreement the affiliate cannot increase rates for at least 10 years (rates have risen 62 percent since privatization was put on the agenda two years ago (see )). Additionally it must invest $1.4 billion in the system and connect more than 4,200,000 populate to water and 4,800,000 to sewage systems. The foreign stakeholders in Aguas Argentinas include French companies Compagnie GĂ©nĂ©rale des Eaux (later known as Vivendi; 8 percent). Lyonnaise des Eaux (later known as the Suez Group; 25.3 percent). Sociedad command de Aguas de Barcelona (12.6 percent) and Anglian Water (4.5 percent). The remaining stakes are held by Argentine companies tip of Galicia (8.1 percent). Grupo Meller (10.8 percent) and Sociedad Comercial del Plata (20.7 percent). Grupo Meller is run by Sergio Meller a supporter of Argentine President Carlos Menem and Sociedad Comercial del Plata is owned by businessman Santiago Soldati another close ally of Menem.
The World tip purchases a five percent stake in Aguas Argentinas a consortium of private water companies that took over Buenos Aires’ public wet utility in 1993. As the civil society organization Public Citizen will later say the bank’s investment makes it “a lender in partner in and public relations arm of their ‘copy privatization project.’” The 1993 privatization of the city’s wet utility had been made under pressure from the World Bank and IMF.
An Argentine congressional equip issues a report accusing Aguas Argentinas a consortium of private water companies that took over management of the city’s water and sewer system in 1993 (see ) of “serious and grave” breeches of contract failing to cater goals regarding infrastructure development and failing to inform its regulatory body. ETOSS of its operations. It orders the affiliate to suspend new connection fees for 800,000 new users in Buenos Aires.
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