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Court Challenge Seeks to Void Sale of Comahue Hydropower Plants

Fundación Soberanía alleges that the Economy Ministry sidelined the state appraiser and used flawed valuations that, if upheld by the court, could undo the government's $2.3 billion privatization plan.

Overview

  • Citing a filing expanded on Monday, Fundación Soberanía asked the federal court in General Roca, overseen by Judge Hugo Greca, to summon named businessmen and to investigate and annul the Comahue dam adjudications if irregularities are proven.
  • The complaint sets out a four-part alleged scheme: bypassing the Tribunal de Tasaciones de la Nación, assigning valuations to a BICE unit, valuing assets with a Discounted Cash Flow method that critics call speculative, and rushing 'sin base' contests under fiscal pressure.
  • The filing names the firms that won bids as possible beneficiaries: Edison Inversiones (Grupo Neuss) for Alicurá and Cerros Colorados, BML Inversora (MSU Green Energy) for El Chocón–Arroyito, and Central Puerto for Piedra del Águila.
  • Fundación Soberanía points to internal TTN rules and a TTN member's statement that Discounted Cash Flow counts hypothetical future gains rather than a patrimonial valuation, and it criticizes BICE's valuation unit as new and dependent on the Ministry of Economy.
  • If Judge Greca finds procedural or competence defects the court could annul sales, which would unsettle the government's revenue plan, prompt further probes of ties between adjudicated firms and political advisors, and create legal and financial risks for communities and workers tied to the dams.