The AMB water management tender has been formally approved, establishing a private model across eight municipalities. Valued at over €1 billion, this contract represents one of Catalonia’s most significant public tenders in recent years. Consequently, it cements a long-term private operational model for regional water services.
Scope and Scale of the AMB Water Contract
This new contract lasts for 25 years and covers approximately 230,000 residents. The municipalities included are Cervelló, Corbera de Llobregat, La Palma de Cervelló, Molins de Rei, Ripollet, Sant Andreu de la Barca, Sant Cugat del Vallès, and Tiana. Among these is Sant Cugat del Vallès, one of the municipalities in the tender, known for its high cost of living.
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Under the approved framework, a single private company will oversee all water management. However, rates will be differentiated for each town. This decision effectively ends recent political proposals for a public operation system. Therefore, it locks in a private concession model for the next quarter-century.
Financials and Required Investment
The estimated total contract value stands at €1.078 billion. This figure comprises a base of €937.5 million for the initial 25-year term. An additional €140.6 million is allocated for potential extensions, capped at three years and nine months.
Crucially, the contract mandates a significant capital injection. The winning bidder must execute investments totalling €168.7 million across the service area. These upgrades aim to modernise the network and ensure efficiency. This investment is notable given the wider context of chronic underinvestment in Catalan infrastructure in other sectors.
Exclusion of Aigües de Barcelona
A notable aspect of this AMB water management tender is the exclusion of Aigües de Barcelona. Due to a specific court ruling, the region’s dominant player is ineligible to participate. Consequently, the tender opens the market to other major operators seeking a foothold in the metropolitan area.
Timeline and Impact on Consumers
Companies have a two-month window to submit their bids. The AMB anticipates the new adjudicator will commence operations in the second half of 2026. Regarding consumer costs, tariffs will remain frozen during the first year. This grace period allows the new operator to implement systems and plan mandatory engineering works. The execution will be followed closely, especially when compared to another major public service infrastructure project facing delays.
However, from the second year onwards, water bills are expected to reflect the cost of the major investments required by the contract. For more information on public utility management, you can review guidance from the UK’s water services regulator.
Political Divisions Over the Tender
The tender approval has exposed political rifts within the AMB administration. The measure passed with support from the PSC, Vox, and Vivim Montcada i Reixac. The vote caused a split within Junts; some councillors voted in favour, while others like Àngel Pedrós and Cristina Paraira voted against.
Meanwhile, ERC, the PP, and smaller local parties abstained. In contrast, the left-wing En Comú Podem voted against the privatisation of the service.
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