MercoPress. South Atlantic News Agency

Uruguay: New water treatment plant approved

The Uruguayan government canceled the controversial Arazatí plan known as Project Neptuno

Uruguay is moving forward with plans for a 200,000 cubic meter water treatment plant in the Santa Lucía River basin, specifically in the Aguas Corrientes area. This decision comes after renegotiations of a contract, with the project now the previously planned Arazatí initiative was scrapped.

A significant change from the original proposal, the plant will be managed by OSE (State Sanitary Works), addressing earlier concerns about private sector involvement. Presidential Secretary Alejandro Sánchez highlighted this as a positive outcome of the negotiations.

The project also includes improvements to part of the fifth pumping line, as well as the construction of a raw water reservoir and a smaller water treatment plant in Solís Chico, to meet the increasing demand for drinking water in the eastern region of the country.

Sánchez stated that these works will be carried out at two-thirds of the cost initially proposed in the original contract. The deadline for the contract changes has been extended to August 31, with work expected to begin in 2026.

Sánchez praised the collaborative efforts of government teams and the consortium companies, noting their professionalism and willingness to renegotiate for the “general good.” This flexibility from the consortium was acknowledged as crucial in reaching a mutually agreeable outcome.

Earlier this week, the Uruguayan government canceled the controversial Arazatí water treatment plant project (known as Project Neptuno) and communicated this decision to the private consortium Aguas de Montevideo. The initiative reduces the project's cost, which was initially estimated at US$900 million over 17.5 years for the Arazatí plant.

The new changes aim to ensure a stable water supply to the metropolitan area until 2045, as the current infrastructure is at maximum capacity and consumption is projected to increase significantly. Additionally, the Executive Branch will proceed with the Casupá dam project, financed by the Development Bank of Latin America (CAF).