Court upholds injunction against AySA
An appeals court in La Plata has confirmed a precautionary measure that stops AySA from changing the conditions under which it provides water and sewage services in the Buenos Aires metropolitan area. The decision by the Chamber II of the Administrative Litigation Appeals Court came amid the privatization process promoted by President Javier Milei's administration.[S1]
The court ruled that the company cannot modify, reduce, limit, suspend, or alter its obligations related to access to drinking water, public health, and environmental protection. It also decided that the case should continue in the federal justice system. The ruling was signed by judges Pablo Muñoz, Gerónimo Arias, and María Ventura Martínez.[S1]
Ombudsman's challenge and government timeline
The lawsuit was filed by Buenos Aires provincial ombudsman Guido Lorenzino, who argued that the new concession contract reduces environmental, health, and user protection standards. The claim covers water and sewage services in the 26 municipalities where AySA operates in the conurbano and metropolitan region.[S1]
The government has extended the deadline to September 15 for bids to acquire 90% of AySA's shares, expecting to raise about 450 million dollars. The new contract, signed in May 2026, is part of the privatization process under the Ley Bases, which declared AySA subject to privatization, and Decree 494 enabled the transfer of 90% of the company's capital to the private sector.[S1][S2]
Legal reasoning and next steps
The judges based their decision on the human right to water, precautionary and preventive environmental principles, and the 'in dubio pro natura' doctrine used by the Supreme Court. They considered that a deterioration of service guarantees could cause damage that is difficult or impossible to repair later, so they deemed it necessary to keep the injunction in force while the litigation continues.[S1][S2]
The court also confirmed that the case should proceed in federal court, arguing that the dispute requires interpreting the national regulatory framework and that AySA has 90% of its capital in state hands. The ruling does not annul the privatization process but limits the application of the new concession contract where it could reduce current service guarantees. The case's merits will now be decided by a federal court yet to be assigned in La Plata.[S1][S2]
