MercoPress, en Español

Montevideo, December 9th 2016 - 09:39 UTC

Argentina ordered to pay 405m dollars to nationalized Suez water works

Friday, April 10th 2015 - 03:03 UTC
Full article 68 comments
The French group released a short statement indicating it accepted the judgment and expressing its hope that Argentina complies with the compensation order. The French group released a short statement indicating it accepted the judgment and expressing its hope that Argentina complies with the compensation order.
In 1993, Suez subsidiary Aguas Argentinas was awarded the water and sewage services management in Buenos Aires, but in 2006 the contract was terminated In 1993, Suez subsidiary Aguas Argentinas was awarded the water and sewage services management in Buenos Aires, but in 2006 the contract was terminated
The service had been privatized in the nineties during the presidency of Carlos Menem. The service had been privatized in the nineties during the presidency of Carlos Menem.

The World Bank's International Centre for Settlement of Investment Disputes (ICSID) has ordered Argentina to pay 405 million dollars to French company Suez, who saw their contract for water and drainage provision cancelled in 2006. The service had been privatized in the nineties during the presidency of Carlos Menem.

Suez, who were replaced by the state-owned AYSA enterprise when water services in the Greater Buenos Aires area were nationalized seven years ago, had originally demanded a settlement of 1.2 billion dollars due to the breach of contract.

The French group released a short statement following the ruling, indicating that it accepted the judgment and expressing its hope that Argentina complies with the compensation order.

”Suez welcomes the decision taken by the ICSID (International Centre for Settlement of investment Disputes) on 9 April 2015, sentencing the Argentine Republic to pay $405million in damages for the prejudice suffered in relation with the termination of the Aguas Argentinas water and waste water management concession contract in Buenos Aires,“ says the statement.

”This decision represents an important step in the process of solving this dispute. The next step consists of making sure that the ICSID's decision is implemented.

“In 1993, the Group's subsidiary Aguas Argentinas was awarded the contract to manage the water and waste water management services in Buenos Aires. In 2006, the Argentine government terminated the contract.

The ICSID's decision comes after a procedure lasting several years. The ruling recognizes SUEZ environment's rights and ”the work done by the Group's teams to service a population of more than 8 million inhabitants, including 2 million who did not previously have access to running water and wastewater management services.”

The Argentine government is yet to comment on the ruling, one of several verdicts which have been passed against it following a series of nationalizations of utilities and assets privatized during the presidency of Carlos Menem in the 1990s.

 

Top Comments

Disclaimer & comment rules
  • ilsen

    More of the same. No wonder the whole world no longer trusts Argentina.

    The decline is inevitible. Cristina is to blame for not taking control of this.

    With different policies, and some acceptance of responsibility for past mistakes, she could have taken Argentina so high, but due to her own corruption she has destroyed that potential, and taken the country down so low.

    Apr 10th, 2015 - 03:31 am 0
  • Skip

    That's your tax dollars Nostrils!

    And Think!

    Thank you very much!

    Apr 10th, 2015 - 07:01 am 0
  • Clyde15

    Do you think that they will actually pay up !!!

    Apr 10th, 2015 - 08:04 am 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!