The Government advances in privatization process of the Comahue damswhile the extension of the concession is still in force. Now, he ordered thata Public Company Transformation Agency be in charge of managing the sale of the share package.
The measure was made official through the decree 895/2024published this morning in the Official Gazette. Through this regulation, the Executive establishes: “Within 180 calendar days following the entry into force of this Public Company Transformation Agency in coordination with the Ministry of Energy, both dependent on the Ministry of Economywill call a National and International Public Tender, competitive and expeditious, in order to proceed with the sale of the majority or controlling share package of each of the following companies.
It’s about the dams Alicurá, Chocón-Arroyito, Cerros Colorados and Piedra del Águila. In mid-August, the Executive ordered the extension for a maximum period of one year of the concessions of the four hydroelectric plants, so they did not pass into the hands of the company Energía Argentina, as expected a few months ago, to continue in the hands of AES, Enel, Aconcagua and Central Puertorespectively.
The extension decree predates the creation of the agency dedicated to the privatization of public companies, so what the Government did was adapt the current regulations so that that area is in charge of advancing in that direction.
In fact, in the recital of the norm, they allege that “the Agency must intervene in the legal and regulatory aspects of comprehensive privatization projects, total or partial sale of share packages, among others; as well as participate in the preparation and approval of the General and Particular Terms and Conditions Documents and other contractual documentation necessary to carry out private initiative and privatization procedures and submit to the approval of the National Executive Branch the awards made in the aforementioned privatization processes.”
In this context, they also established that the Secretary of Energyin coordination with the agency, will have the power to set the guidelines for the national and international public tender for the sale of the majority shareholding of the companies. As the regulations indicate, this “must include the remuneration scheme for concessionaires during the Concession Period and at least the following annexes: Concession Contract, perimeter and description, inventory, safety of dams, reservoirs and auxiliary works; water management standards; permanent guards; environmental protection; insurance; (ix) mandatory works and works.”
In turn, the Government repealed anddecree 19/2024which established that the energy portfolio should be responsible for appointing the directors or auditors of companies and societies with state participation or any other business form where the State makes use of its rights of participation or representation.
The plants were concessioned for 30 years in 1993 during the presidency of Carlos Menemuntil August 2023, with the possibility of extending the contracts for one more year. Since then there was a temporary extension for operators that has now been extended for up to one more year.
This is a sensitive issue on two fronts. The first is that Neuquén and Río Negro demanded at the time that they be taken into account for the distribution of assets. They rely on the fact that the Constitution establishes the provincial ownership of resources, in this case the waters that feed hydroelectric generation.
In total, the nominal installed power among all the plants is about USD 4,170 megawatts (MW), which represents around 10% and 15% of the national energy matrix. Starting this year, another 15 concessioned dams will begin to expire, which, although they have a lower generation flow, are expected to suffer the same fate as those of Comahue.