AMB Water Megacontract: Veolia and Sacyr Among Bidders

Six business groups are competing for the 25-year water supply management contract in eight municipalities of the Barcelona Metropolitan Area, valued at 1.078 billion euros.

Generic image of a water tap with a drop of water falling, with a blurred urban background.
IA

Generic image of a water tap with a drop of water falling, with a blurred urban background.

One of the most significant water supply contracts in the Barcelona Metropolitan Area (AMB) has entered its bidding phase, with six business groups vying for the 25-year service management in eight municipalities, valued at 1.078 billion euros.

This contract, which includes a potential extension of three years and nine months, covers water services in the towns of Cervelló, Olesa de Llobregat, Molins de Rei, La Palma de Cervelló, Ripollet, Sant Andreu de la Barca, and Sant Cugat del Vallès. The successful bidder will be required to make an initial investment of 7 million euros for the service's implementation.
After the bidding deadline closed last Friday, the companies aspiring to manage the supply for approximately 230,000 inhabitants have been announced. Notable participants include Sacyr and Agbar (integrated into Veolia), both bidding individually. Several Temporary Business Unions (UTE) are also competing, such as those formed by Facsa-GS Inima-Constructora de Calaf, Gestagua-Saur, Aqualia-Aguas de Valencia, and Indaqua-Hidrogestión.
Veolia, which restructured its business in Spain late last year by integrating Agbar, aims to maintain its dominant position, as it is currently the concessionaire for this service and manages 83% of AMB municipalities. Its new general director, Daniel Tugues, is leading this effort. Meanwhile, Aqualia, owned by FCC and the Australian fund IFM, seeks to consolidate its presence in Catalonia, where it already supplies 240 municipalities and operates the Tordera desalination plant in Girona. Some consider it Veolia's main competitor, given the relationship between FCC and Antonio Balmón, mayor of Cornellà and chief executive of the AMB.

The winner will assume the risk if water demand does not meet projections. Furthermore, economic increases in personnel or supply costs are considered normal operating expenses, with no additional compensation foreseen.

The awarded company will pay an annual fee of 2 million euros to the AMB, subject to annual review based on average tariff evolution. The concessionaire's revenues will come exclusively from user tariffs and fees, with the possibility of charging interest on unamortized invested capital, capped at 3.5% during the first decade.