Argentina's waterworks go private

The move to privatize Argentina's waterworks system was based on a study of approaches to privatization in England and France. The main water and sanitation company, Obras Sanitarias, had had too many problems with weak management, overstaffing and a poor tariff system. Leaking water pipes and latrines spilling into the groundwater with no capital for maintenance caused a severe deterioration of public services. Rights to the management of Obras Sanitarias will be transferred next year to a private company, which will be required to perform all repairs to the existing system. There are no funds, presently, for expansion. This experiment takes place in Buenos Aires, and, if successful, will be adopted in other Argentinian towns and cities.