Case study: Argentina.
Abstract
This case study from Argentina examines private water provision in Buenos Aires. The Buenos Aires concession started on 1 May 1993 with Aguas Argentinas as contractor, Ondeo Services as operator. The objectives-oriented contract, to be focused on outputs, e.g. coverage, rather than inputs, e.g. investment, called for 100% coverage of water supply in year 30 and 95% sewerage coverage. After steady progress, though inevitably a little slower than anticipated and apparently more costly than some felt reasonable, the economic crisis in 2002 led to a massive devaluation of about 75%. This led to an equal fall in the water tariff which, similar to the currency, had been contractually linked to the dollar. After several years of negotiations and a joint partnership to promote service to the poor there has been no agreement on future tariff levels and investment. Aguas Argentinas announced its withdrawal.
Citation
Center for Water Science, Cranfield University, UK, 8 pp.
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