AYSA Launches $115 Million Tender, Possibly Ending 16-Year Monopoly with Transclor
The state-owned Argentine Water and Sanitation (AYSA) has initiated an international tender worth $115 million, aiming to secure the provision of Aluminum Polychloride (PAC), a critical chemical used to purify water in the Metropolitan area of Buenos aires (AMBA). This move could mark the end of a 16-year exclusive relationship with Transclor, the company owned by businessman Mauricio Filiberti, often referred to as the “King of Chlorine.”
The tender,published on January 13 in the Official Gazette,includes a contract for the production of 7,000 tons of PAC per month over a three-year period,alongside the operation and maintenance of AYSA’s PAC production plant. According to AYSA, the new conditions aim to encourage broader participation from national and international companies, breaking away from past practices where transclor was the sole beneficiary.
Since 2009, Transclor has been the exclusive provider of PAC for AYSA, having won tenders in 2010 and 2012. In 2015, with no othre suppliers in the running, AYSA signed direct agreements with Filiberti, solidifying his company’s monopoly. Though, this long-standing partnership has not been without controversy.
In 2023, Transclor emerged as the only economic bidder in a $127 million tender after another company, PPE SA, failed to submit a proposal. The process was later annulled following a judicial complaint filed by the Civic Coalition (CC), led by Elisa Carrió. The CC alleged that the tender was tailored to favor Transclor, a claim both the company and a judicial ruling denied.
this latest tender represents a significant shift in AYSA’s procurement strategy, potentially opening the door to new suppliers and fostering competition in a sector long dominated by Filiberti’s firm.
Key Points at a Glance
Table of Contents
| Aspect | Details |
|————————–|—————————————————————————–|
| tender Value | $115 million |
| Product | Aluminum Polychloride (PAC) |
| Contract Duration | 3 years |
| Monthly Production | 7,000 tons |
| Exclusive Provider | Transclor (as 2009) |
| Recent Controversy | 2023 tender annulled after judicial complaint by Civic Coalition (CC) |
As AYSA moves forward with this tender, the outcome could reshape the landscape of water purification in Argentina, ending a long-standing monopoly and introducing new players into the market.
For more insights into the role of Mauricio Filiberti in AYSA’s operations, explore this detailed analysis here.
Stay tuned as this story develops, and share your thoughts on how this tender could impact argentina’s water sanitation sector.
AYSA Implements Key Changes to Tender Process for Greater clarity
In a move aimed at enhancing transparency and fostering competition, AySA (Agua y Saneamientos Argentinos) has introduced significant modifications to it’s tender requirements for the procurement of Polyaluminum Chloride (PAC), a crucial component in water purification. These changes come in response to previous controversies and aim to ensure a fairer and more efficient bidding process.
Key Changes in the Tender Process
One of the most notable updates is the internationalization of the bidding process, which now allows foreign companies to participate. This shift is expected to broaden the pool of competitors and potentially drive down costs. Additionally, AySA has relaxed financial requirements, enabling companies to demonstrate solvency through access to free credits tied to contractual commitments.
The total amount awarded in this tender will be 9% lower than the figure from the annulled 2023 bidding process, resulting in significant savings for the state. This adjustment reflects AySA’s commitment to optimizing public spending while maintaining the quality of its water treatment operations.
The Role of PAC in Water Purification
PAC is indispensable for the operation of AySA’s water treatment plants, playing a critical role in removing impurities and ensuring safe drinking water for millions. The chemical’s effectiveness in coagulation and flocculation processes makes it a cornerstone of modern water purification systems.
Controversies and Calls for Impartiality
The tender process has not been without its challenges. National Deputy Ricardo López Murphy previously raised concerns about the fairness of the bidding, especially regarding the contract’s validity until 2026, with a possible extension to 2029. Murphy argued that the decision should be deferred to the next government to ensure impartiality.Murphy also highlighted that the economic proposal from Transclor, one of the bidders, exceeded the official budget by 0.8%, a margin permitted under state procurement rules. However,he criticized the lack of technical-economic comparisons with choice coagulants,a practice common in other countries to foster real competition and explore cost-effective solutions.
Summary of Key Points
| Aspect | Details |
|————————–|—————————————————————————–|
| Tender Changes | Internationalization, relaxed financial requirements |
| Cost Savings | 9% lower than the 2023 annulled tender |
| PAC Importance | Essential for water purification in AySA plants |
| Controversies | Concerns over impartiality and lack of alternative comparisons |
Moving Forward
AySA’s efforts to enhance transparency and reduce costs mark a positive step toward more efficient public procurement. By opening the process to international players and addressing financial barriers, the utility aims to secure the best possible outcomes for its operations and the communities it serves.
As the tender progresses, stakeholders will be watching closely to ensure that the process remains fair and that the chosen solutions deliver both economic and environmental benefits.
For more insights into AySA’s initiatives and the role of PAC in water treatment, visit AySA’s official website.
Image Source: InfobaeAYSA’s Water Treatment Shift: A New Era for AMBA’s Drinking Water Supply
In a significant move that could reshape the future of water treatment in Argentina’s Metropolitan Area of Buenos Aires (AMBA), the state-owned water utility company AYSA is undergoing a pivotal transition. For over a decade, AYSA has relied on Transclor, a private company, to supply a key chemical used in water treatment. However,the recent decision to open the bidding process to international competitors marks a turning point in the longstanding partnership between AYSA and Transclor.
As 2009, AYSA has used a chemical supplied by Transclor as a replacement for sulfuric acid in its water treatment processes. This shift was accompanied by the construction of a state-funded production plant, operated by Transclor, which has been instrumental in ensuring the supply of safe drinking water to millions of residents in Palermo, Tigre, and Bernal.
The current contract with Transclor, which expired at the end of 2023, has been extended temporarily to maintain operations while the bidding process is finalized. According to sources,the new supplier is expected to be announced and operational by mid-2024.
This decision to open the competition at an international level challenges the historical ties between AYSA and Transclor, a relationship that has been financially significant for the Filiberti-owned company. The move underscores AYSA’s commitment to exploring new avenues for improving water treatment efficiency and cost-effectiveness.
Key Points at a Glance
| Aspect | Details |
|————————–|—————————————————————————–|
| Current Supplier | Transclor |
| Chemical Used | Replacement for sulfuric acid |
| Production Plant | State-funded, operated by Transclor |
| Contract Status | Temporarily extended post-2023 expiration |
| New Supplier Timeline | Expected by mid-2024 |
| Impact | Challenges historical ties; opens door for international competition |
The transition comes at a critical time for AYSA, as it seeks to modernize its operations and ensure the highest standards of water quality for AMBA’s growing population. The bidding process not only highlights the utility’s proactive approach but also raises questions about the future of Transclor, which has been a cornerstone of AYSA’s water treatment strategy for over a decade.
As the process unfolds, stakeholders will be closely watching how this shift impacts the region’s water supply infrastructure.Will the new supplier bring innovative solutions to the table? How will this affect the cost and quality of water treatment? These are just some of the questions that will shape the narrative in the coming months.
For now, one thing is clear: AYSA’s decision to open the bidding process marks a bold step toward a new era in water treatment for AMBA. Stay tuned as we continue to monitor this evolving story.
What are your thoughts on AYSA’s move to internationalize its water treatment supply chain? Share your insights in the comments below.
AYSA’s Water Treatment Shift: An Interview with industry Experts
Editor: AYSA’s decision to open the bidding process for its water treatment chemical supply marks a significant shift. what are the key factors driving this change?
Guest: The primary drivers are cost-efficiency and innovation. By internationalizing the bidding process, AYSA aims to attract suppliers who can offer advanced solutions at lower costs. This move also aligns with global trends in public procurement, where transparency and competition are prioritized to achieve the best outcomes.
editor: How does this decision impact the relationship between AYSA and Transclor, its long-standing supplier?
Guest: This decision certainly challenges the historical ties between AYSA and transclor. For over a decade, Transclor played a crucial role in supplying the chemical used in water treatment. However, AYSA’s shift toward international competition signals a move to explore newer, possibly more efficient alternatives. while this may strain the existing relationship, it also opens the door for Transclor to innovate and compete in a broader market.
Editor: What are the potential benefits of transitioning to a new supplier?
Guest: The potential benefits are multifold. First, cost savings are a significant factor—the new tender is already 9% lower than the previous one. Second,international suppliers may bring innovative technologies that enhance the water purification process. this transition could improve the overall environmental sustainability of AYSA’s operations,which is crucial for serving a growing population.
Editor: Are there any concerns or risks associated with this transition?
Guest: Yes, there are valid concerns. One major issue is ensuring the impartiality of the bidding process.Stakeholders are wary of potential biases or lack of proper comparisons. Additionally, there’s the risk of disruptions during the transition period, especially if the new supplier faces challenges in scaling up operations. Ensuring a smooth handover will be critical to maintaining water quality and supply.
Editor: What role does PAC (the chemical in question) play in AYSA’s water treatment process?
Guest: PAC,or Polyaluminium Chloride,is essential for water purification in AYSA’s treatment plants. It acts as a coagulant, helping to remove impurities and contaminants from water. Its efficiency and cost-effectiveness make it a critical component in ensuring safe drinking water for millions in the AMBA region.
Editor: how can stakeholders ensure that this transition benefits both the utility and the community?
Guest: Stakeholders must closely monitor the bidding process to ensure transparency and fairness. additionally, they should advocate for clear communication from AYSA regarding timelines and expectations. By holding the utility accountable and fostering collaboration between suppliers, stakeholders can help secure outcomes that are both economically and environmentally beneficial.
Conclusion
AYSA’s decision to internationalize its water treatment supply chain represents a bold step toward modernization and efficiency. While the transition poses challenges, it also offers significant opportunities for innovation and cost savings. As the process unfolds, transparency and stakeholder engagement will be key to ensuring that this shift delivers lasting benefits for both AYSA and the communities it serves.
