AySA Seeks New PAC Supplier After 16 Years

Title: AySA‘s Biggest Licitación Yet: Unlocking Transparency and Competition in the PAC Market

In a significant shift, Argentina‘s state-owned water utility, AySA, has launched its most substantial international tender to date, worth 115 million dollars. This move, designed to secure a reliable supply of Policloruro de Aluminio (PAC), could potentially signal the end of a 16-year-long exclusive relationship with Transclor, the company headed by Mauricio Filiberti, often dubbed the "cloro king."

The tender, published in Argentina’s Official Gazette on January 13, seeks a three-year contract for the monthly production of 7,000 tons of PAC, alongside the operation and maintenance of the production facility, owned by AySA. This represents a departure from the past, where only Transclor had secured the tender, with new conditions aimed at fostering greater involvement from both domestic and international companies.

Since 2009, Transclor has been AySA’s sole PAC supplier, having won tenders in 2010 and 2012. By 2015, with no other viable providers, AySA resorted to direct agreements with Filiberti, cementing Transclor’s exclusive status.

In 2023, things took a dramatic turn. Transclor emerged as the sole economic bidder in a 127 million dollar tender. However, the process was abruptly halted following a judicial denunciation by the CCC (Civil Coalition), alleging that the terms had been tailored to favor Transclor. Both the company and a subsequent judicial ruling refuted these claims.

The tenders’ annulment was also denounced by Ricardo López Murphy, a national legislator, who suggested that the contract’s decision should be deferred to the incoming government. He highlighted that Transclor’s bid exceeded the official budget by a mere 0.85%, a margin permitted by state purchase regulations. Nevertheless, he criticized the lack of comparison with alternative coagulants, a practice common in other countries to encourage genuine competition and consider more economical and efficient options.

AySA has listened. In this latest tender, the company has introduced significant changes, including an international call to attract foreign participation, and relaxed financial requirements, allowing for solvency demonstration through access to unrestricted credit lines. The total amount to be awarded is a 9% lower than the previous, cancelled tender, promising savings for the state.

PAC plays a pivotal role in AySA’s water treatment process, with plants located in Palermo, Tigre, and Bernal serving millions of people in the Buenos Aires metropolitan area. Its introduction in 2009, replacing sulfuric acid, was accompanied by the construction of a production plant, financed by the state and operated by Transclor.

With the current contract’s expiration at the close of 2023, and a series of extensions keeping Transclor afloat during the judicial turmoil, the scene is set for a significant shift in AySA’s supplier landscape. The process is expected to culminate in the new provider taking over mid-year, challenging the long-established relationship between AySA and Transclor, which has been a significant contributor to Filiberti’s company’s revenue.

This aspiring licitación by AySA marks a pivotal moment for ArgentinaS water treatment sector. By opening the market to competition, AySA not only seeks to secure a⁢ reliable ⁤and cost-effective supply of PAC, but also to ​usher in an era of greater openness ⁢and accountability. The potential for new players to⁢ enter the market promises innovation and perhaps lower prices for consumers. While Transclor’s dominance ⁤has shaped the industry for sixteen years, this licitación presents a crucial prospect to diversify supply chains, strengthen competition, and ​ultimately benefit the Argentinian ⁤public. Only time will tell how this‌ notable shift⁤ will impact the future⁢ of the PAC ⁤market, ‌but ‍one thing is certain: AySA’s bold move sets the ‌stage for a more dynamic and competitive landscape.

A New Era for PAC Procurement in Argentina

AySA’s decision to launch this ample international tender marks a pivotal moment in Argentina’s PAC market. After 16 years of exclusive reliance on Transclor, the utility is taking a bold step towards clarity and competition.

This move not only signifies a potential end to Transclor’s monopoly but also opens the door for a wider range of suppliers to participate. The inclusion of both domestic and international companies in the bidding process promises to drive innovation, possibly leading to better quality products and more competitive pricing for AySA and, ultimately, Argentinian consumers.

While the outcome of this tender remains to be seen, it is clear that AySA is committed to ensuring a fair and clear procurement process. This shift towards a more open market structure has the potential to reshape the PAC landscape in Argentina,fostering healthy competition and benefiting the nation’s economy.