Old News
OCTOBER 2011 | Pay more for water
(Article published in “cinco días” on 27 October 2011)
On-line article Click here | Download article in pdf
Sara Acosta - Madrid - 27/10/2011
"Spain needs an investment of 19,000 million euros to meet European demands for infrastructure and depuration"
How is it that in a country where water stress is a constant, the urban water price remains below the European average? This is the persistent question asked by the concessionaires and construction of infrastructure and that remains unanswered by the administration. The companies are raising even more their voice now, when European funds have ceased to finance large projects and the procurement of new infrastructure is practically stopped. "The main problem remains being the costs not being covered by a 30%," says Juan Pablo Lopez Heras, partner at consulting Professional Water & Partners, specialized in the water sector.
In crisis and no new construction contests, there are few alternatives to the drought of funds for urban water management. An imposed solution for business, and is the rate increase from the 8,000 municipalities upon which the price of this good in Spain.
"The problem is that each council sets a different rate, which does not necessarily follow the adjustment costs, but political expediency," say from this firm. The national urban water management remains extremely sensitive and is unlikely to change, let alone when approaching an election date. Transfers, desalination or purification, any solution may be the ideal while pursuing maximum efficiency to provide water to citizens, experts estimate provided continue to pay what it costs to maintain them.
The macroproyect of the City of Valdeluz launched by Reyal Urbis in the city of Yebes (Guadalajara) is another example. It began to take shape in 1998, but it was not until 2002 when work began. The development is designed as a large city five miles from Guadalajara and minutes from Madrid.
"With the Government and local councils under minimum drowned, begin to set priorities, and what is not, is postponed, such as sewerage or cleansing", explained from Aquagest. "No public money, the only solution left is the rate, raise and adjust prices, creating, for example, clearance fees." This adjustment would charge more for those who consume more water.
Financing
While the debate on increasing the rate remains inert on the table, the sector together calls for a new model for financing infrastructure lime financial asphyxiation of municipalities and the halt of new tenders. "Lack of funding is that municipalities can’t meet its debt obligations, which is very worrying. The public deficit is preventing management to make investments, a situation that will continue in the same tone in the coming years, also very worrying because no investment, "forecast at Veolia. If such a flight of investment by Spanish companies, which are considered leading in the world, "runs the risk that the contests were deserted, because the amounts requested and businesses millions will not come," added from Aquagest. Already, companies are shifting their business model from pure and simple grant towards the provision of technology services, which require less investment and pose less risk. "Concessions are paralyzed and we are very interested in technology sales," said Jose Angel Legaz, CEO of Veolia Water in Spain.
Concessionaires and water infrastructure development in Spain have been compensating for the lack of national export market, but it is a partial solution. The industry insists that imposes public-private partnerships to fund existing works and as a means to launch new tenders. "We were the pioneers of this model, we have joint ventures, and effective public-private participation is one of the few routes left unexplored, is a good scheme because it will help finance possible," claims from Aquagest.
From the industry insists that what is at stake is both the supply and quality of service. "Spain needs an investment of 19,000 million euros to meet EU requirements in infrastructure and debugging. Almost none of the populations of fewer than 5,000 residents have water purification service, especially on the coast and islands. The Coast resort towns continue to dump directly into the sea, "they say in Professional Water & Partners.
The need for a state regulatorThe sector has been calling almost always the creation of a regulatory body for water, an entity that sets the rules above to give municipalities and local councils and business legal stability to a service that lives at the pace of political change. United Kingdom, for example, has sold its water infrastructure to private operators, but the price is set by the state through a regulator of these characteristics. In Spain alone can privatize the management, infrastructure owned by the State law, but now the management of the service depends on a multitude of authorities. "A regulator would provide guarantees to investors. In fact, regulatory uncertainty is one reason that investment is taking off. A unified regulator and industry would be the lever to attract new investors," added from Aquagest. Indeed, this widely dispersed water management in Spain was one of the reasons that pushed Agbar, the matrix of this company specializing in integrated water cycle; otherwise focus your business and gambling concessions not so much traditional as technology solutions with added value. "With more restricted funding, we must find creative solutions to minimize investments. The grant is neither the cheapest nor efficient to finance," they conclude from this company. |
OCTOBER 2011 | Effiwater awarded two service contracts with Canal de Isabel II
On 06/10/2011 EFFIWATER has been awarded two AUDIT SERVICES contract for water consumption of Canal de Isabel II.
These contracts are intended for the detection and resolution analysis of any incident arising in the process of reading water meters, as well as conducting special readings for the control of the flow supplied through the distribution network.
The scope of these contracts is extended to municipalities in the north and south of the Community of Madrid and its borderings.
OCTOBER 2011 | Strategic Collaboration agreement between Citynet and Effiwater.
On October 2011, Citynet, a company specialized in the expansion and development of optic fiber infrastructures using sewage network, and Effiwater, expert in engineering and technology based on the integrated water cycle, have signed an strategic collaboration plan.
This agreement will allow, in collaboration solvency, the growing opportunities from the business professionals of each of them and manage jointly the different proposals framed in large projects in which the activities and specialties of each are complementary.