Argentina to Re-privatize Comahue Hydroelectric Plants

The Argentine government has advanced in the re-privatization process of the four hydroelectric plants in the Comahue region by formally authorizing seven business consortia to compete in the final stages. The competition is now concentrated among seven high-profile players. The next key event will take place this Friday, November 28th, at 10:00 AM local time, when economic bids will be opened via the CONTRAT.AR system. Following the technical pre-selection, the economic offers that will determine who will take over the operation of the Alicurá, El Chocón-Arroyito, Piedra del Águila, and Cerros Colorados complexes—responsible for 15% of the country's electricity generation—will be opened. The Ministry of Economy approved the pre-qualification of seven consortia that met the established legal and technical requirements for the total sale of the shares of the managing companies. The transition aims to guarantee operational continuity in a system that is strategic for the national electricity supply. In parallel, the Executive has already launched the preparatory process to privatize another seven hydroelectric plants, whose contracts will begin to expire between November 30th of this year and July 30th, 2026. Until then, the dams remain under the control of the original concessionaires, whose 30-year contracts expired more than two years ago. These are the Futaleufú—whose contract was extended until December—, Cabra Corral, El Tunal, Ullum, El Cadillal, Escaba, and Pueblo Viejo complexes. Enarsa, the state company that operates these plants, held a public hearing this week to hire a comprehensive technical audit on the condition of each dam. Among those authorized are the current operators—Enel; AES Argentina; Central Puerto along with Central Costanera; and Orazul—and three new groups led by Edison; Aluar and Genneia; and Pampa Energía. The objective is to determine the current state of the machinery, its degree of maintenance, and the necessary investments to ensure its operation in the event of re-privatization. The decision on the Comahue dams will mark the first major milestone in the reconfiguration of the national hydroelectric map within the framework of the government's program of deregulation and transfer of state assets. Sources: official documents from the Ministry of Economy; Enarsa reports; privatization process records. Although the government aimed to raise around US$500 million, the nine offers received at the beginning of the process extended that range to an estimate of between US$700 and US$800 million. In Resolution 1910, the economic ministry excluded IPS Renewal from the process for failing to meet minimum requirements for operating large plants and for other technical deficiencies. The private sector's interest exceeded initial expectations. Although bids were submitted for all units, regulations allow the same group to operate a maximum of two dams simultaneously.