Uruguay’s next government mulls fate of US$900mn water project

Uruguay’s next government is weighing its options regarding the controversial US$900mn Neptuno water project.

Alejandro Sánchez, nominated by President-elect Yamandú Orsi as the next secretary of the presidency, met with representatives of the outgoing government and consortium Aguas de Montevideo to discuss the project, which has drawn criticism from experts and civil society organizations. 

Orsi will take office on March 1. 

The entire project involves 80km of pipelines and a 200,000m3/d treatment plant, planned to benefit Montevideo and parts of neighboring Canelones and San José departments.

Neptuno was proposed by the current administration but to advance, a reservoir to be used when salinity in the Plata river is too high, would have to be redesigned or removed, daily El Observador reported participants of the meeting as saying.

Critics claim the planned 15 million cubic meter reservoir would submerge fertile land and affect subterranean waters.

The government also proposed adding a new water intake for the treatment plant in an area with lower salinity to reduce the need for secondary storage. 

Protests against the project took place while the officials met, and Sánchez told journalists that the next government will study the modifications.

On the campaign trail, Orsi pledged to reactivate the US$80mn Casupá dam, which the current government put on the back-burner in favor of Neptuno.

Around 150 civil society organizations signed a letter addressed to President Luis Lacalle Pou, urging him not to sign a contract with Aguas de Montevideo.

Aside from environmental concerns, the letter also highlighted legal challenges.

A judge ruled against the plant last year, arguing that the contract violated the constitutional provision under which only the State may provide water services. The ruling was later overturned, however.