The president of Argentina, Javier Milei, reacts during the America Business Forum inaugural U.S. edition, taking place at the Kaseya Center in Miami on Nov. 6. Photo by Cristobal Herrera-Ulashkevuch/EPA
IMPSA, the first state-owned company sold under Argentine President Javier Milei, reversed years of losses in just nine months and became the first successful case in the libertarian leader’s privatization plan.
The renewable energy firm, partially rescued by the Argentine government in 2021 to prevent its collapse, was acquired in February by the U.S.-based fund ARC Energy. It has posted a nearly $206 million profit so far in 2025, the digital outlet iProfesional reported.
Milei took office in late 2023 promising to shrink the state and attract private investment to revive Argentina’s economy. His plan is based on rules approved in July 2024 that authorize the full or partial sale of state-owned companies. The government also created the Public Enterprises Transformation Agency to manage the process.
With congressional approval, the Milei administration is moving forward with plans to privatize eight companies in the energy, airport services, water and sanitation, railway, and highway sectors.
The sale of significant stakes in nuclear plant operator Nucleoeléctrica Argentina and in Yacimientos Carboníferos de Río Turbio has been approved. Officials also are studying the transfer of 50% of the state’s holdings in Transener, a key company in the electric transmission system.
Of those companies, some already are in active bidding, while others are in the valuation stage.
Economist Martín Kalos, director of Epyca Consultores, told UPI that this wave of privatizations is driven mainly by an ideological approach aimed at limiting state involvement rather than by a rigorous analysis of efficiency or impact.
“There are no formal studies on whether companies become more productive or whether service improves when they move into private hands. It’s simply assumed the state shouldn’t be doing these things,” he said.
Former Hydrocarbons Undersecretary and consultant Juan José Carbajales told UPI that the government already authorized the sale of ENARSA and Intercargo and expects to raise between $500 million and $700 million from each sale.
According to private consultants, these funds are vital for strengthening the Central Bank’s reserves, and private investment is expected to promote job creation and reinvestment.
In Carbajales’ view, the macroeconomic context is favorable. Exchange-rate stability and a drop in the country’s risk index could attract investors. Still, the government faces political obstacles in advancing the sale of assets because it lacks a majority in Congress, forcing it to negotiate with governors and navigate bureaucracy.
In Argentine public opinion, privatizations remain divisive.
The process recalls the 1990s, when many state-owned companies were sold quickly and some, years later, returned to public control because of operational or financial problems, such as Aerolíneas Argentinas and the postal service.
“There is both support and resistance,” Kalos said.
He added that the biggest flaw in the current administration is the lack of a clear strategy. Before selling, the state should evaluate what investments are needed to modernize those companies and make them competitive, and then seek private partners with vision and resources.
“It’s not just about removing a company from state control, but about figuring out how to make it work better. The experience of the ’90s shows that selling without a strategic framework or oversight leads to service losses or forces the state to step in again,” Kalos warned.
