By means of Executive Order No. 493/2025 (the “Executive Order”), published in the Official Gazette on July 22, 2025, the Executive Branch implemented a comprehensive reform of the regulatory framework governing the provision of public drinking water and sewage services
The measure replaces more than 100 articles of the previous regime, established by Law No. 26,221, and falls within the scope of Chapter II of Law No. 27,742 on Foundations and Starting Points for the Freedom of Argentines (“Ley de Bases”)
The purpose of the regulation is to optimize the services and functions under the responsibility of the National Government. In this regard, it seeks to provide greater security and transparency to the actors involved in the management of public services.
Key Aspects of the Reform:
- Authorization for Privatization
The State is authorized to fully or partially divest its 90% shareholding in Agua y Saneamientos Argentinos S.A. (AySA) , with the Ministry of Economy assuming ownership and acting as the enforcement authority. The divestment process must comply with the procedures set forth in Laws No. 23,696 and 27,742.
- New Regulatory Framework
The Executive Order establishes a new regime oriented toward private investment, setting forth new obligations for the concessionaire, including:
- Billing, reporting, and public information duties
- Service quality standards
- Environmental responsibility and control mechanisms
- Arbitration procedures for dispute resolution
- Strategic Infrastructure Planning
A Strategic Improvement Master Plan is created to guide infrastructure projects, define investment priorities, and set expansion targets. The plan shall be reviewed every five years by the Planning Agency (APLA).
- Institutional Reforms
The powers of the Water and Sanitation Regulatory Authority (ERAS) and APLA are expanded to ensure stronger regulatory oversight. A transitional regime of up to five years is established to progressively implement the new regulatory framework following the privatization.
- Governance and Legal Alignment
The Executive Order mandates internal statutory reforms within AySA to align with the new structure and instructs that all legal references to the former Ministry of Federal Planning be understood as referring to the Ministry of Economy. It also repeals several provisions of Executive Order No. 304/2006.
Entry into Force and Legislative Review
Executive Order No. 493/2025 entered into force immediately upon its publication in the Official Gazette.
As a Executive Order of Necessity and Urgency (DNU), it shall be submitted to the Standing Bicameral Committee of the National Congress, which must issue an opinion on its validity or invalidity within a 10-day period, in accordance with Section 99, paragraph 3 of the National Constitution.
