FCC boosts Spanish water portfolio

The company has won over €1.1bn of water contracts over the last few days.

Spanish infrastructure group FCC, via water management subsidiary Aqualia, has added over €1.1 billion of water contracts across Spain to its portfolio, the company announced yesterday. 

The largest of the contracts is a 25-year concession to provide end-to-end water services to the city of Jerez. FCC says the contract is worth close to €900 million and will require additional yearly investments of €1 million to optimise management of 704 kilometres of sewage network and 870 kilometres of water pipelines.  The contract will add 470,000 customers to Aqualia. 

Aqualia was already present in Jerez’s water sector, managing the city’s Guadalete wastewater treatment plant and a further 23 smaller treatment facilities throughout the municipality. With the new contract, Aqualia will now directly manage Jerez’s water treatment, supply, and sewage systems. The company says it has consolidated its position as the leading water provider in the Andalusia region, where it serves 2.4 million people across 100 municipalities. 

However, FCC’s Aqualia has also clinched a number of other water contracts across Spain. They include concessions for the operation and maintenance of water treatment plants in Madrid and Oviedo, as well as the provision of water supply and sewage services in Candeleda, Avila, among others. In all, Aqualia’s contractual bounty outside of Jerez is worth more than €200 million, the firm said. 

Recently, Madrid-based FCC announced a new strategic plan which will see it divest €2.2 billion of non-core assets and downsize the firm’s headcount in troubled Spain. Vice chairman and chief executive Juan Bejar hailed the decision as the “dawn of a new era”. There is speculation that FCC could sell its remaining stake in concessionaire GlobalVia, the firm’s joint venture with nationalised Spanish savings bank Bankia. 

Water subsidiary Aqualia employs over 7,000 people across 17 countries.