OSE to rescind Uragua's contract

Uruguayan state water utility OSE is set to rescind private water operator Uragua's contract, local press reported. The contract will be repealed because of a series of alleged breaches first uncovered in 2003. For its part, Uragua, which serves the city of Maldonado, has asked for an indemnity of US$24mn. OSE's new board began discussing the idea of rescinding Uragua's contract in March this year. Uragua's future in the country, as well as those of other private operators, came into question in October 2004 following the passage of a constitutional reform barring private sector participation in the waterworks sector. Uragua officials were not immediately available for comment when contacted by BNamericas.