Six companies, including Gestión y Técnicas del Agua (Gestagua), have formally advanced in the bidding process for water supply concessions across eight cities in the Barcelona metropolitan area. The Área Metropolitana de Barcelona (AMB) contracting board unanimously admitted their offers, confirming all bidders meet the necessary requirements. This development signals a potential shift in the region's water management landscape.
Gestagua participates in the tender through a temporary business union (UTE) with its French parent company, Saur, which holds a 20% stake. Ángel Fernández, CEO of Gestagua, highlighted the AMB's proactive search for increased competition in the water sector. He stated, "We believe that the AMB is proactively seeking more competition."
Saur, the third-largest water cycle operator in France, boasts a business turnover exceeding 2.3 billion euros and employs approximately 12,000 people globally. Three major investment funds, EQT (50%), CVC Capital Partners (25%), and PGGM (25%), back Saur. These funds collectively manage 600 billion euros, equivalent to 40% of Spain's Gross Domestic Product (GDP).
New Competition for Barcelona's Water Market
Gestagua currently holds a minimal presence in the Catalan market, with one concession in L'Ampolla, Tarragona, and digital meter services elsewhere. These operations represent about 8% of its 11 million euro turnover in Spain. Fernández noted that Agbar (Veolia) manages water for 250 Catalan municipalities, controlling 65% of the market.
Aqualia operates in 241 municipalities but holds only 4% of the market share. Fernández suggested that heavy reliance on a single company, like Agbar, is not beneficial for citizens or local councils. He emphasised Gestagua's substantial investor backing, which is three times larger than Aqualia's.
Leveraging Digital Innovation and Experience
Gestagua brings extensive experience from other territories, including its public-private partnership Emalsa in Las Palmas de Gran Canaria, which serves 400,000 people. Saur leads in integrated water service management for metropolitan areas in France, operating 16 control centres. This expertise aligns directly with the AMB's requirements for the concession.
The company also highlights its advanced digital capabilities, investing 30 million euros annually in research and development (R&D). Gestagua has four research centres and over 90 registered patents. Their proprietary technology, Blue Sphere, integrates artificial intelligence (AI) to unify information across all concessions.
Enhancing Efficiency and Sustainability
Blue Sphere allows real-time monitoring of operations, including vehicle movements and asset locations. This system helps detect leaks quickly in the distribution network, where 25% of water is typically lost between capture and purification. Operatives use digital tablets to optimise their movements, further improving efficiency.
Gestagua also applies AI to optimise pumping schedules, reducing energy consumption. In the sewage network, AI anticipates overflows during heavy rainfall, preventing contamination of beaches. These technological advancements aim to enhance both service quality and environmental protection for residents.
Future Growth and Market Opportunities
Gestagua reported a 75% increase in EBITDA and 22% revenue growth in 2024, reaching 140 million euros. For 2025, the company projects a 2% revenue growth and an 8% EBITDA increase, excluding extraordinary items. Saur aims to achieve a 4 billion euro turnover by 2030 through its expansion phase.
Fernández sees significant growth opportunities in Spain's private water market, where approximately 45% of management is privately conceded. He estimates that one-sixth of this private market operates under "precarious" contracts, meaning agreements have expired but operators continue provisionally. These contracts, like those in the eight AMB municipalities, will eventually go out to tender.
Gestagua's goal in Spain is to increase its turnover from the current 140 million euros to over 200 million euros by 2030. The company's strong financial backing and technological focus position it as a formidable contender in the evolving Barcelona water supply market. This competition could lead to improved services and greater efficiency for metropolitan residents.
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Originally published by El Periódico Barcelona. Read original article.
