United wins power contract in Argentina

United Utilities has won its first large overseas electricity privatisation contract, the North West-based group announced yesterday, as part of a consortium to operate power supplies in Buenos Aires in Argentina, writes Chris Godsmark.

The consortium is paying $404m (pounds 252m) to take over one of three power companies in Buenos Aires for a concession lasting 95 years. United Utilities has a 45 per cent stake in the consortium, alongside Camuzzi, an Italian gas distribution company and Loma Negra, Argentina's biggest cement producer.

The consortium put in bids for all three areas to be privatised after the single state electricity concern, Eseba, was split up.

The Atlantic concession serves about 390,000 customers. United said the infrastructure taken over was in good condition, although there was "considerable scope" for efficiency improvements.

United's overseas ambitions came unstuck last month when it announced it would set aside pounds 83m to cover extra costs from a sewerage contract in Thailand.