Milei moves forward with privatizations worth US$2bn despite opposition criticism

Argentina moves forward with privatizations of at least US$2 billion (bn) this year, while the opposition steps up scrutiny of the processes for selling state assets.

Last week, the country sold all of its shares in the power transmission company Transener, equivalent to a 50% stake in the company, for US$356 million (mn). The buyers were Edison Energía and Genneia.

In addition, the government launched the bidding terms for the sale of 90% of the drinking water and sewage services company in the Buenos Aires metropolitan area, Aysa.

“The issue of privatizations is also going to court,” said opposition senator José Mayans in the last Senate session, after denouncing a “festival of corruption” in the process of disposing of state assets.

The opposition has already warned that it will seek to strengthen controls within the framework of the bicameral commission for monitoring the privatization process of state-owned companies. 

The privatization of Transener was the second of the Milei administration, after the sale of the Mendoza-based company Impsa to a consortium led by the US-based ARC Energy was completed in February, which will take on the renegotiation of liabilities totaling US$576mn.

Meanwhile, the government expects to raise US$500mn from the sale of Aysa.

Aysa's tender schedule provides for the submission of bids until August 27 and the opening of envelopes on the same day.

Meanwhile, on June 10 the result is expected of the tender for 100% of the share package of Intercargo under ownership of the national government, currently in the consultation process until June 2.

Intercargo operates ground services for aircraft towing, marshalling, boarding and disembarking of passengers, connecting aircraft to jet bridges, and loading and unloading baggage, among other services, at 16 airports in Argentina.

The State expects to collect at least US$45mn from this tender.

In addition, Argentina has several road tenders under way for the maintenance of highways and roads as part of the Federal Concessions Network, as well as a concession process for the Paraná waterway.

According to the minister of economy, Luis Caputo, the privatizations could generate revenues of US$2bn this year, although the deputy minister estimated that as much as US$3bn could come in.

In addition to the processes already underway, the government could tender this year the railway transport company Belgrano Cargas y Logística, the thermoelectric plants Manuel Belgrano and General San Martín, the Tandanor shipyard and the Mint.

The bidding plan also includes the concession of Sociedad Operadora Ferroviaria (Sofse), and minority stakes in Nucleoeléctrica Argentina and Yacimientos Carboníferos Río Turbio. 

The state-owned company YPF has also already begun the process to sell its stake in the residential gas distribution company Metrogas.

(The original version of this content was written in Spanish)