Argentina govt faces up to state control of water service

[Judi Lynn]

Argentina govt faces up to state control of water service

Last Update: 6:02 PM ET Sept. 21, 2005

BUENOS AIRES (MarketWatch) -- With the future ownership of Argentine water utility Aguas Argentinas still undecided, the national government is now more openly acknowledging the likelihood that it will run the waterworks itself.

Aguas Argentinas's former operator, French utility Suez (SZE), said earlier this month it is leaving the concession after a breakdown in contract talks with the government. The local unit's board of directors affirmed this decision on Monday, taking the formal contract rescission process a step further.

Government officials were quick to outline their ideal plan for reorganizing Aguas Argentinas, with Planning Minister Julio De Vido saying the administration prefers an "Edenor-style solution." In the case of local power distributor Edenor (DNOR.BA), its former majority shareholder, Electricite de France (EDF.YY), is selling a 65% stake but retaining 25% and providing technical assistance for five years.

Suez, however, has shown no signs of pursuing such an arrangement, and President Nestor Kirchner gave the French company a final boot out the door Monday when he said: "If Suez wants to go, let it go...this president is not going to permit that company to continue to leave the Argentine people without water or sewage."
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http://www.marketwatch.com/news/story.asp?guid=%7B666DC609-80ED-473C-B79A-5F09523D67FE%7D

[NYC]

1. Natural resources should not be privatized.

It can only cause misery and increase poverty.

[The Backlash Cometh]

2. kick