Malena Galmarini
Aysa, the state water company, is requesting cooperation from the Ministry of Economy for debt repayment. On February 1, 2023, a Negotiable Obligation (ON) will expire for $ 500 million and the company says it doesn’t have its own funds to deal with it.
“We are talking to the Ministry of Economy to see what solution we can find,” said Malena Galmarini, head of Aysa at the public hearing to raise water rates. There he demanded a 32% increase in two tranches: 20% in July and 10% in October. After this hearing, he will go for another increase.
“The company is clear could not pay US $ 500 million in early Februaryalthough we pay interest on the loan in a timely manner, “he said. Debt coupons represent $ 33 million annually (US $ 16.5 million per semester), “he said.
“We think it is careless this is a financial operation and we will find a way to resolve it, ”Galmarini said. The issue of this loan was made in 2018 and the repayment of a rate of 6.625% per annum.
The previous administration said it took this credit to carry out infrastructure works and improvements. The current leadership chooses to ask the Treasury to finance its deficit. On its own revenue, it does not cover operating costs for the costs of providing gas and water services, nor can it perform new tasks.
Galmarini also confirmed that, after this hearing, the company will ask the regulator a “Rate segmentation” of water, in line with what the Secretary of Energy is trying to do, which aims to remove subsidies from higher -income households or those in neighborhoods with high purchasing power.
“To the extent that the rate of Aysa does not increase the inflation rate, the scope of operating costs is reduced by their own income from the billing of services provided. And, as a consequence, the need for subsidies from the National Treasury through current transfers is increasing ”, said a film presentation by Malena Galmarini – which exceeded the time she had to speak to the audience.
Aysa expects a budget of $ 170,000 million for this year: $ 96,700 million for its costs and $ 73,700 million for improvements and new works. If this 32% increase is approved, With your collection you can pay 35% of operating costs, while it will only cover one -fifth of your total money needs.
The coverage of costs through fees reached its lowest in 2013, when it was 29%. In return, it reached its highest in 2019. After several increments of the previous administration, tickets cover 90% of the cost. The Treasury subsidized the remaining 10%.
“It’s great to speak how, to the extent that the rate doesn’t rise according to the inflation rate or the exchange rate, the income is lower,” Galmarini pointed out.
With the 32% increase it has demanded so far, Aysa is only generating a 9% increase in expected revenue for this year. “We are only working on the space to meet business needs and resources. Let it be very clear that with this tariff increase, the national State will be able to allocate the resources it is now allocating to Aysa towards other investments. “That won’t happen. It will allow us to raise another $ 3.3 billion.”
From 2019 (last year in which the rate was adjusted) to 2022, accumulated inflation was 336%, while the (official) exchange rate rose 278%.
More than 60% of Aysa’s operating costs were shifted by local prices and they increased by 310%. Rates rose 48%.
Energy, personnel, chemical inputs and purchasing are Aysa’s four main costs. In 2021, energy consumption is expected to be US $ 57 million, a reduction compared to the US $ 64 million set aside for this purpose in 2019. Staff adjust according to parities. In 2021, the salary increase will be 52%. For this year, 45% is planned, but revisions taking place in various unions are believed by authorities to be higher.
Source: Clarin
