Government prepares new privatization wave targeting power plants, dams, gas pipelines and Intercargo

Argentina’s government is preparing a new privatization wave that it expects to bring in more than $1 billion before the end of the year. Economy Minister Luis Caputo has included the proceeds in plans to cover debt payments through 2027.

The immediate move will be the sale of the state’s controlling stakes in two of the country’s main thermal power plants. The government holds 65.006% of Termoeléctrica Manuel Belgrano and 68.83% of Termoeléctrica José de San Martín. Market estimates put the value of each stake at about $300 million, although competitive bidding will determine the final price.

Both facilities are large combined-cycle plants, each with net capacity of 865 megawatts. Manuel Belgrano operates in Campana, Buenos Aires province. It generated 4,452 gigawatt-hours in 2024 and consumed 766 million cubic meters of natural gas. José de San Martín, in Timbúes, Santa Fe province, produced 3,338 gigawatt-hours and used 540 million cubic meters of gas.

Enarsa, the state energy company, shares ownership of both plants with major private generators including Central Puerto, AES Argentina Generación, Enel Generación El Chocón and Pampa Energía. The government is seeking to transfer its majority stakes as part of Enarsa’s phased privatization. It has already sold its interest in Citelec, which controls Transener, for $356 million.

The broader agenda includes the ongoing AySA process, valued at about $500 million, and a second attempt to sell Intercargo, this time without a base price. The Agency for the Transformation of Public Companies is also preparing concessions for four hydroelectric complexes whose original contracts have expired, followed later by major pipelines operated by Enarsa, including the Perito Moreno pipeline, originally named Néstor Kirchner.

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large-ticket operations