Uruguay seeks to reactivate Casupá dam construction

Fulfilling a campaign promise, Uruguay's President Yamandú Orsi is moving to reactivate the US$80mn Casupá dam, which was abandoned by the previous administration.

"We have requested the future authorities of [state water utility] OSE to resume the construction works of the Casupá dam as soon as possible," environment minister Edgardo Ortuño said during his first speech.

The administration's five-year term started March 1.

Ortuño added that he will work with Orsi and other institutions to draft a national infrastructure plan to secure potable water provision until 2050. 

The previous government abandoned the 118mn cubic meter dam in favor of the US$300mn Neptuno potable water project, which sparked criticism in the wake of the 2023 water crisis in Montevideo.

Presidential secretary Alejandro Sánchez said on Monday that the contract the previous government and consortium Aguas de Montevideo signed in January will be reviewed. 

Sánchez later told radio broadcaster Del Sol that the project wasn't designed correctly and that Casupá offers a better water solution for Montevideo's metropolitan area.

The contract includes provisions for potential modifications, such as relocating a controversial raw water reservoir.

Social and environmental groups oppose Neptuno, with a judge even barring contract signing, arguing it could violate a constitutional provision under which only the State can provide water services.

Although the ruling was overturned on appeal, critics have maintained the judge's argument. 

The Neptuno project included an 80km pipeline network and a 200,000m3/d treatment plant, which was planned to serve Montevideo and parts of neighboring Canelones and San José departments.