Kirchner to talk utilities in France.

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President Néstor Kirchner and most of his Cabinet start today on a four-day official visit to France, where he is to meet with French President Jacques Chirac and local businessmen with interests in Argentina’s utility sector.

Kirchner’s delegation includes Economy Minister Roberto Lavagna and Investment Minister Julio de Vido, who are expected to discuss with French authorities and businessmen the future of French investments in the water and power areas.

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The government is said to be considering scrapping the contract with Aguas Argentinas, the water company controlled by France’s Suez. The company owes the government more than 60 million pesos in fines. The latest fine was slapped by the Kirchner administration last week, days after service was cut in sweltering heat.

Utilities have for over two years been urging the government to update rates, which remained frozen after the sharp devaluation of the peso in January 2002. The Edenor power distributing company is also controlled by French capital.

MercoPress