2023-08-05 16:33:24
File photo.
The representative of the Broad Front on the OSE Board of Directors, Edgardo Ortuño, denounced that the public company that provides water to the national population is going to be “underfunded” with the Neptuno project, or Arazatí, a private water purification plant has generated a debate in the national population and, of course, the protest of the FA and the social movements.
According to its detractors, the Neptuno project represents the privatization of a human right, such as access to drinking water, and could lead to increases in production costs. Ortuño has warned that this will “seriously compromise” the future of OSE since it will “make it impossible” to carry out necessary works in the departments of the interior of the country and the metropolitan area.
The government is firm in its idea of the private water plant: It would cost us US$950 million
Despite the questions, President Luis Lacalle Pou and his administration insist that Arazatí will be good for the country, especially in the midst of the water crisis that is afflicting the metropolitan area of Montevideo and Canelones.
The bidding document says it could cost no less than US$253 million, which could increase depending on certain circumstances. The proposed business model assumes that the private company builds, finances and maintains the plant while OSE will be forced to pay US$52.7 million per year. At the end of the 20-year contract, it will have paid US$950 million.
Ortuño assures that public management is the “most convenient” way to manage this potential plant, since it lowers operating costs for OSE by some US$25 million per year. At the end of 20 years, the Uruguayan State would save approximately US$480 million.
With these numbers, the front member assures, it would be impossible to maintain the rates without being affected by strong increases for consumers. If the invoices for clients remain like this, assuming that the annual investment would be around US$70 million, there would be a deficit of about US$1,700 at the end of the tender.
“The options to cover the deficit generated by the implementation of both private initiative projects are a rate increase, contributions from the central government or indebtedness, which is the path chosen in the approved budget,” said the chief.
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