The Javier Milei government is once again putting up for sale four hydroelectric plants that are key to the generation and distribution of energy throughout the country.
Through Decree 718/2024 , it set a deadline of 180 days for the privatization of these complexes located in the Comahue region, between Neuquén and Río Negro, and de facto renewed for different periods the share package of several other power plants whose concessions had expired.
The power plants affected by the decision published this morning in the regulation signed by the President, Minister Luis Caputo and Chief of Staff Guillermo Francos are: Alicura, the Chocon, the Red Hills and the Eagle Stone.
The decree 718/2024 It indicates that within six months the Energy Secretariat "will call for a national and international, competitive and expeditious public tender, in order to proceed with the sale of the majority or controlling share package" of each of these companies.
Most of the concessions for these plants were granted last year, during the Fernández-Fernández administration. What the measure published in the Official Gazette does is ratify the operating periods, give continuity to operations and generate the conditions for a new public tender.
Currently, the hydroelectric complexes are in the hands of the following companies : Orazul Energy manages Cerro Colorados, ENEL Generación does the same with El Chocón-Arroyito; AES SA operates the Alicurá power plant, and Central Puerto SA holds the Piedra del Águila concession.
Eagle Stone
The decree clarifies that these power plants - key in the conversion of electrical energy to then be distributed in the network that reaches homes, industries and other sectors - were transferred to the private sector and that they are currently out of date and in a transition period.
The concession process in recent years was handled by Enarsa (Energía Argentina NA) and NASA (Nucleoelétrica Argentina SA) and this time they will be doing so again. The difference is that this time, these two state companies were included in the Ley Bases package as companies to be privatized. Therefore, there will no longer be a state agency specialized in the subject to oversee the criteria for the new privatization.
The criteria will be determined by the Energy Secretariat and the Ministry of Economy, which will act as implementing authorities, according to the decree published this morning.
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