After the confirmation of quorum for the Bases Law that will be debated tomorrow in the Senate, one of the key points for the package of laws to be approved are privatizations of companies in state hands. One of the issues to be negotiated by the ruling party is the concessions of eleven public companies, and the possibility that Aerolíneas Argentinas leaves the list of state companies that would pass into private hands.
Although the Government proposes the total privatization of the airlineas well as that of Radio and Television, Intercargo and Energía Argentina (Enarsa), There is resistance from senators from the South, as in the case of Fuegian radical Pablo Blanco and of the Chubut Edith Terenzi that they will generally approve the majority opinion, but oppose the sale of the airline company by maintaining that some provinces will be isolated.
If the 33 votes of Unión por la Patria and some other senators are added to this rejection, the ruling party runs the risk not only of eliminating the privatization of Aerolíneas Argentinas, but also of the other companies that are included in the article. 7 of the Basic Law as RTA, Intercargo and Enarsa.
Which are the state companies that can be privatized with the Bases Law
The Base Law establishes: “Declare ‘subject to privatization’in the terms and with the effects of Chapters II and III of Law No. 23,696, the companies and societies wholly or majority owned by the National State listed in Annex I that are part of this law. To proceed with the privatization of such companies and societies, the transfer to the Provinces of contracts that are in execution may be considered.”. The companies that are stipulated for total privatization are:
- Aerolíneas Argentinas SA
- Energía Argentina SA
- Radio and Television Argentina SE
- Intercargo SAU
For partial privatization, the following state-owned companies:
- Agua y Saneamientos Argentinos SA
- Official Mail of the Argentine Republic SA
- Belgrano Cargas y Logística SA
- Railway Operating Company SE (SOFSE)
- Corredores Viales SA
Meanwhile, two other companies must “organize a joint ownership program and place a class of shares for that purpose; and incorporate the participation of private capital, with the National State having to maintain control or majority participation in the social capital.”. These are:
- Nuclear Power Argentina (POT)(Atucha I and II and the Embalse power plant).
- Río Turbio Carboniferous Deposit (YCRT)
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