Argentina Moves Forward with Privatization Plans Under Javier Milei’s Government
The Argentine government has initiated a series of formal actions aimed at privatizing key industries, including electricity, mining, and water distribution, reflecting the commitments made to the International Monetary Fund (IMF) under President Javier Milei’s administration, reports 24brussels.
On Tuesday, the government announced multiple decrees and resolutions in the Official Gazette, outlining steps to transfer operational control of four hydroelectric plants, the country’s primary coal mine, and the largest piped water distribution company into private ownership.
In line with this initiative, the Executive has mandated a bidding process to be launched within 60 days for the re-concession of the Comahue region dams — which include the Alicurá, El Chocón, Piedra del Águila, and Cerros Colorados plants — for an additional 30 years. These facilities, located in the Río Negro and Neuquén provinces, contribute 7.8% to Argentina’s total electricity generation.
Concessions for these hydroelectric plants, initially granted in 1993, expired in August 2023, leading the government to extend them temporarily while preparing for the bidding process.
Moreover, the Milei administration ordered the transformation of Yacimientos Carboníferos de Río Turbio (YCRT), located in Santa Cruz province, into a corporation with the aim of privatization. The assets of YCRT, which are estimated to be worth around $260 million, encompass the mine, a rail-port complex, and a thermoelectric facility.
This coal firm is part of the privatization agenda outlined in the “Foundations and Starting Points for the Freedom of Argentinians” law, which was passed by Congress in June 2024. However, this law requires the national government to retain a majority stake in YCRT should its capital be opened to private investors.
In contrast, the government can completely divest its 90% stake in Agua y Saneamientos Argentinos (Aysa), which is also part of the privatization law. The Executive has stipulated that within eight months, at least 51% of the state’s shares in Aysa will need to be sold through a bidding process to a strategic operator; any remaining shares can subsequently be offered on the stock market.
Aysa serves approximately 3.8 million users in Buenos Aires and surrounding areas, making it the largest piped water distributor in Argentina, with a net worth of 8.5 trillion pesos (approximately $6.512 billion) as of late 2024.
El presidente de Argentina Javier Milei, avanza en la instalación del modelo neoliberal que ha sido replicado en la región, cuyos resultados ya son conocidos: concentración de la riqueza, exclusión social y debilitamiento del Estado.https://t.co/S91BCuT5Uz
— teleSUR TV (@teleSURtv) August 20, 2025
Privatizations represent a crucial commitment made by Argentina as part of its new Extended Fund Facility agreement with the IMF, signed in April. This agreement entails total disbursements of $20 billion, setting stringent targets for the nation to build up monetary reserves. Argentina is required to submit a privatization roadmap to the IMF by mid-November for the firms included in the “foundations law.”
