Political economy of contractual disputes in private water and sanitation: lessons from Argentina

This paper examines the causes of the contractual disputes in the water and sanitation sectors and the resulting reversal of the privatization process. The evidence has been gathered from four major case studies in Argentina. The discussion is based on the evidence contained in the legal submissions made by the Government of Argentina and the disputing companies to the International Centre for the Settlement of Investment Disputes. The findings of the paper offer important lessons for the design and management of similar contracts for other countries.