The Argentine government launched a national and international bidding process on Friday to privatize 90% [1] of the water utility AySA.

This move represents a significant step in the administration's effort to dismantle state-run enterprises. By transferring utility management to the private sector, the government aims to reduce the state's footprint in the economy, and improve the efficiency of public services [4].

The bidding process was formalized through Resolution 704/2026 [2], with the official terms and conditions published in the Official Gazette of the Argentine Republic [3]. The administration is seeking private operators capable of managing the water and sanitation infrastructure of the region.

Under the leadership of President Javier Milei, the government has prioritized the sale of state assets to curb public spending. The privatization of AySA follows a broader strategy to shift the burden of infrastructure maintenance and operational costs from the taxpayer to private investors.

According to the published documents, the government has set the date for the opening of offers for the 27th of the month [2]. The tender is open to both domestic and international firms, signaling a desire to attract foreign capital into the country's utility sector.

This action is part of a wider series of privatizations. The government is also moving forward with the privatization of Intercargo and various road networks, while shifting its focus away from the privatization of Aerolíneas Argentinas.

“The government launched a national and international bidding process to privatize 90% of AySA.”

The move to privatize AySA is a core component of the libertarian economic platform of the Milei administration. By selling 90% of the utility, the government is attempting to eliminate the fiscal deficit associated with state-run services while betting that private competition will solve chronic infrastructure issues. This shift may lead to changes in service pricing and accessibility for millions of residents who rely on the state water system.