Tucuman creates public-private water utility

Argentina's Tucuman province has created public-private water utility Sociedad Aguas de Tucuman, Rogelio Savid, general manager of Tucuman's current water utility Obras Sanitarias de Tucuman (OST), told BNamericas. The new water utility will begin operating January 1 after taking over from national waterworks promotion and financing agency Enohsa, said Savid. The provincial government will hold 90% of the utility and workers the remainder under a property participatory program, he added. Enohsa took over Tucuman's waterworks service on an interim basis in 1998 when French waterworks consortium Aguas del Aconquija abandoned its concession contract due to disagreements over contract details. The current management agreement expires December 31. The federal government has pledged 28mn pesos (US$9.4mn) to carry out priority works, the majority of which will be carried out in 2004, Savid said. Although no timetable was available, the government plans to hire a private sector executive to manage the company for four years, after which a decision would be made on whether to put out the company to concession. Largely rural Tucuman, in northwest Argentina, has some 1.34 million residents, and according to the latest information available from Enohsa, 88.4% have drinking water coverage and 50.5% have sewerage service, while 39.2% of sewage/wastewater receives primary treatment.