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Master in Water Engineering Water Supply and Drainage Systems

This article explores the history of water policy and business management in Spain, from the Ancient Regime to the present. It examines the development of water supply and drainage systems, the role of private and public management, and the challenges and reforms in water policy over time.

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Master in Water Engineering Water Supply and Drainage Systems

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  1. Master in Water EngineeringWater Supply and Drainage Systems

  2. Water Supplyin a historical approach Professor in charge: Alberte Martínez

  3. Water policy in Spain • The Ancient Regime • Building of modern dams (XVI-XVII) • Bourbons: failed navigation projects (XVIII) • From navigation to irrigation (XIX): the failure of private projects • Regenerationism and consolidation of the hydraulic paradigm (1880-1936) • Economic, social and technocratic reformism • “Hydraulic mission" became the central idea • State´s key role, but little success

  4. Water policy in Spain • The golden era of the hydraulic paradigm (1936-2000) • Spread of large reservoirs (ten times) • Growing importance of hydroelectric use (1/3) • Development of River Basin authorities (1926-1961) to satisfy the needs of large water consumers (hydroelectric and water companies, irrigation interests) and engineering firms: contradiction between short term private interests and long term social and environmental problems • New water policies (2000->) • Water Framework Directive: ecological status of water, cost recovery principles, public participation • New Water Culture: demand-side solutions and public participation • Desalination plants instead of rivers transfers • More complex governance: social and regional actors

  5. Water supply and business management in Spain • Private management, 1840-1936 • Public intervention and municipalization, 1936-1990 • Privatizations, 1990->

  6. Private management, 1840-1936 • Private management due to the public limits • Construction of the networks • Expansion of the service • Relationship with urban growth and new bourgeoisie neighborhoods (Ensanches) • Small investments • Small volume of flows with no planning of future needs (private model->economic short term profitability)

  7. Private management, 1840-1936 • Start of the process, 1840-1900 • Consolidation and plenitude, 1900-1936

  8. Start of the process, 1840-1900 • Small initiatives • Most of them in big cities • Some of them speculatives ->failure and sale of concession to big companies, some foreigners

  9. Consolidation and plenitude, 1900-1936 • Spread to small and medium size cities • From city center to popular neighborhoods • Legal development • Declaration as public service • First public subsidies

  10. The role of the foreig investment • Advantages: k, technology, management, experience • Important role but smaller than in other sectors (mines, railway, electricity) • Interested in financial investment and sell pipes • Focused in big industrial or mining cities and ports • Tipology • Small companies (speculatives) and engineers • Big companies, backed by banks, which uses politicians and small co as intermediaries

  11. The role of the foreig investment • Pioneers: GB in Andalusia, middle of XIXth • Traditional presence: sherry wine, mines • Municipalization of water companies in GB in the last third of XIXth • Belges, in Barcelona (1867) and Alicante • French (the biggest) in Barcelona (1882)

  12. The role of the foreig investment • 1850-1880: first sizing up • 1880-1913: plenitude • Golden age of global fdi • 1914-1959: withdrawal • Economic crises • Nationalist and municipalist background • 1960 onwards: slight recovery • Mainly technological consultancy • France (Lyonnaise des Eaux-Suez) and USA • Expansion in the 1990s • Dominant shareholding (Veolia in FCC, Suez in Agbar) and partnership in Lat

  13. Spatial distribution • Factors: economic, demographic and urbanistic dynamism • Biggest concentration and precocity in mediterranean coast (Barcelona) • Strong urbanization • Concentrated population • Economic development • Light rain

  14. Spatial distribution • Backwardness in the rest • Interior: economic, demographic and urbanistic stagnation • North: scattered population, heavy rain • Path • Big->medium-small cities (emulation effect) • Public and emblematic buildings->bourgeoise->popular neighborhoods

  15. Public intervention and municipalization, 1936-1990 • Causes • Franquiste state intervention • Economic strangulation • Costs inflation • Fares freezing • Need of investments to meet the expansion of demand • Priority in state subsidies to the municipalities • Proximity of concessions expirity • Service deterioration

  16. Public intervention and municipalization, 1936-1990 • Municipalization as a municipal service, not a municipal company • Municipal dificulties to manage the service • Tendencies to group water supply and drainage • Tendencies to set up municipal syndicates • Increasing global comsumption • Irrigated agriculture • Industrialization and urbanization • Tourisme

  17. Privatizations, 1990-> • Causes • Economic crisis of 70s/80s • Structural deficit, aggravated by the crisis • Neoliberalism • Tipology • Municipal/mixed company • Private company • Entry of building companies (FCC) • Aguas de Barcelona/Suez as a giant

  18. Privatizations, 1990-> • Diversification towards technological specialization and consultancy • New culture of water • Control of demand • Fares have to integrate the whole costs, including drainage

  19. The sector in the recient years • Generic data • Supply • Quality • Drainage

  20. Generic data • Management regime • Prices and costs • Workforce

  21. Management regime • 1990 • Weight of public management, specially by the own municipality • More weight of private companies in small cities • More weight of public companies in big cities • 2010 • Predominance of companies (private or public), instead of municipalities • More weight of private management, specially in small and medium size cities • More weight of mixed companies, specially in big cities

  22. Management regime in 1990

  23. Management regime in 2010

  24. Management regime in 2010

  25. Management regime in municipalities under 20.000 inhabitants, 2010

  26. Rates and costs • Strong rise of rates but not enough to meet whole costs • Regional and urban rates according to the access costs • Cheaper than in Europe • Cheaper than other utilities and bottled water • Tendency to subcontracting

  27. Water rates, 2001-2009, euros/m3

  28. Rates in 2010

  29. 2012

  30. Rates in Spanish citiesin 2005, in euros/m3 for an annual consumption of 175 m3

  31. Rates in European cities, 2010

  32. 2000

  33. Bottled water sales in Spain,in m3 ,1970-2004

  34. Costs structure, 2010

  35. Workforce • Progressive improvement in professional qualifications • Qualifications level according to the cities size

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