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Catalonia’s Supreme Court cancels the tender allocating Greater Barcelona’s water supply to Acciona

In early November, the Catalan Government decided to allocate the public tender privatising the service of the publicly-owned Aigües Ter-Llobregat – which supplies water to the 5 million people of Greater Barcelona – to a joint venture led by Acciona. This meant that the Catalan Executive cashed in €300 million in 2012 and €700 million was to be split over the next 50 years. The operation was aiming to reduce public deficit. However, Agbar appealed the tender because it thought that Acciona was not fully respecting the terms of reference. Now the Court have backed Agbar’s view and cancelled the tender. Acciona has already announced that it will appeal to the Spanish Supreme Court and, in the case that it loses the concession, it will sue the Catalan Government for damages, since the contract came in to effect on the 1st of January.

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27 March 2013 09:41 PM

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ACN

Barcelona (ACN).- Catalonia\u2019s Supreme Court announced on Wednesday that it was cancelling the tender that allocated the service of the publicly-owned Aigües Ter-Llobregat (ATLL) \u2013 which supplies water to the 5 million people of Greater Barcelona \u2013 to the joint venture led by Acciona. In early November, the Catalan Government decided to allocate the tender privatising ATLL\u2019s service to the joint venture led by Acciona, which includes the Brazilian investment bank BTG Pactual. The operation meant that the Catalan Executive cashed in \u20AC300 million in 2012 and \u20AC700 million was to be split over the next 50 years. The operation was aiming to reduce the Catalan Government\u2019s deficit for 2012, which was finally set at 1.96% of Catalonia\u2019s GDP. However, another company participating in the tender, Agbar, appealed against the decision because it thought that Acciona was not fully respecting an annex of the terms of reference. In addition, an internal body of the Catalan Government analysing the public tender\u2019s concession issued a report backing Agbar\u2019s views. The Catalan Government defended the allocation by saying that the annex had not been considering an exclusion condition. In addition, it stated that Acciona was offering a cheaper price for water, resulting in a better service for the citizens. However, Catalonia\u2019s Supreme Court has backed Agbar\u2019s view and has cancelled the allocation of the tender. Acciona had already announced on Tuesday that it will appeal to the Spanish Supreme Court and, in the case that it loses the concession, it will sue the Catalan Government for damages, since the contract came in to effect on the 1st of January. Meanwhile, the concession remains in Acciona\u2019s hands, until the Spanish Supreme Court decides on the outcome of the issue.


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  • An ATLL water pipe in Greater Barcelona (by P. Solà)

  • An ATLL water pipe in Greater Barcelona (by P. Solà)