[1] The highest profile concession was signed in 1993 with a consortium led by the French firm Suez for the metropolitan area of Buenos Aires.
[4] The authors estimate that the main reason is the massive expansion of access to water, which was concentrated in poorer areas that did not receive services before private sector participation was introduced.
According to the government, the supplied water had high levels of nitrate, pressure obligations were not kept and scheduled waterworks were not executed by the concessionaire.
Alcazar et al. list some features of the concession which indicate an overhasty process:[7] In addition, the inexperienced regulatory agency was repeatedly bypassed when decisions were taken, for example in the renegotiation of the contract in 1997.
Solanes points out that without this practice, companies may seek financing in local capital markets to avoid currency fluctuations.
Aspects of the model have been adopted by the government to extend services to another 400,000 people in La Matanza in the province of Buenos Aires in the project "Water plus work" ("Aguas más trabajo").
During the first six years of the concession, Aguas Argentinas limited its approach to these areas to an analysis done together with the International Institute for Environment and Development - Latin America.
[16] First, the provincial government conducted a series of meetings with municipalities and user organizations to discuss the benefits and risks of the concession before it was bid out.
And fifth, the government "ignored the traditional paradigm of only permitting companies with significant previous experience in water supply and sanitation to compete in the bidding process".
In Salta, however, the bid was won by the Argentinian construction, power and toll road enterprise MECON S.A., which signed a technical assistance contract with the Brazilian Paraná State public utility SANEPAR.
For example, in February 2008 the regulatory agency initiated penal proceedings against the concessionaire because one of its wastewater treatment plants discharging to the Arenales River was not functioning.