Spending cuts to impact Argentina’s $22bn water plan

Published May 10th, 2018

Argentina’s financial crisis and the government’s recently announced $1.3 billion cut in infrastructure spending will have a limited impact on the $22 billion national water and wastewater plan, according to official sources.

“We haven’t received details of where the cuts will fall, but projects which do not yet have an assigned budget will likely not now go ahead as planned,” a spokesman at the Ministry of Interior, Public Works and Housing told GWI.

Projects covered by Buenos Aires water operator AySA’s €500 million debt issue and those financed by the national water fund will be unaffected.

The government wants to make up the shortfall in public spending with private sector investment, and the ministry plans to finance water sector projects worth $9.5 billion via PPPs.

Despite this, “in the current conditions, the government is deluding itself in hoping to attract private sector financing,” water sector analyst Guillermo Mingolla told GWI.