Economy & Business - May 2005

Suez said it was pulling out of Santa Fe after the local authorities refused to allow it to increase its charges by 60%. It is not clear what Suez's partners, Banco de Galicia and Aguas de Barcelona, will do. The company's local employees also hold 10% of the shares in the local subsidiary. The local government claims that Suez's subsidiary, Aguas de Santa Fe has not made the investments it promised. Suez has been running Aguas de Santa Fe since 1995. It has 700,000 customers in 15 cities across the province. The governor of Santa Fe, Jorge Obeid, said that the state government would re-take control of the business and then seek to privatise it again. 

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