Mendoza to create new state water concessionaire

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articlenopicArgentina's Mendoza provincial government has cancelled Obras Sanitarias Mendoza's (OSM) water and sanitation concession contract and will create the new state-run firm Agua y Saneamiento Mendoza (ASM) to replace it.

The contract was cancelled due to OSM's failure to meet contractual obligations, governor Celso Jaque said in a statement.

The bill to create the new state-run utility also asks the legislature to approve 10mn pesos (US$2.5mn) in funding to cover the water and sanitation services that OSM will provide until September 27.

The government will define a new regulatory framework and tariff system for the new firm, as well as a strategic investment plan, the release said.

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