Uruguay presidential frontrunner pledges to reactivate Casupá dam

The US$80mn Casupá dam project will be reactivated if opposition candidate Yamandú Orsi becomes Uruguay’s new president, though he has not clarified what he would do with the current administration’s push for the US$295mn Neptuno project.

“We must set the bases for a deep transformation that is centered around water security in three main aspects: guarantee water supply for the population, both in quality and quantity, water needs for production, and the protection of natural resources,” Orsi, who represents the left-wing Frente Amplio party, said while unveiling an initial 48-point government plan. 

Orsi is the current frontrunner for the October 27 general elections, with most polls showing him leading although not surpassing the 50% threshold to avoid a runoff. The second round would be held on November 24 when his most likely opponent would be Álvaro Delgado, who represents the ruling center-right Partido Nacional.

Orsi pledged to start the Casupá dam “immediately.” The reservoir, initially pushed by Frente Amplio’s last government under Tabaré Vázquez (2014-19), was discarded in favor of the Neptuno project by the current Luis Lacalle Pou administration, despite questions over the compatibility of a private investment with a constitutional amendment passed in 2004 that left potable water services exclusively in the State’s hands. 

In June, a judge ruled against the contract that was to be signed by state water utility OSE and the consortium behind Neptuno, arguing that the scheme could be seen as a privatization attempt. 

The Casupá dam, which in 2019 had financing approved by Latin American development bank CAF, would have capacity of 118Mm3.

Frente Amplio has argued that the structure could have been ready in time to deal with the water scarcity crisis that affected capital Montevideo last year.

Also in Orsi’s proposals, which are partially derived from a wider Frente Amplio platform unveiled earlier this year, are a national sustainable irrigation plan, electric vehicles representing 50% of the public transport fleet, and reforms so multinationals pay taxes through their branches in Uruguay and not their headquarters abroad, among others.

The full presentation can be seen here (in Spanish).