Policy and regulation A cornerstone of the legal framework for water supply and sanitation is the 1985 Water Law (
Ley de Aguas). Policy and regulation functions for water supply and sanitation are shared among various Ministries. For example, the Ministry of Environment is in charge of water resources management and the Ministry of Health is in charge of drinking water quality monitoring. Basin Agencies (
Confederaciones de Cuencas Hidrográficas) are in charge of planning, constructing and operating major water infrastructure such as dams; elaborating basin plans; setting water quality targets, as well as monitoring and enforcing them; granting permits to use water, as well as inspecting water facilities for which permits were granted; undertaking hydrological studies; and to provide advisory services to other entities at their request. Basin Agencies are headed by a President who is nominated by the Cabinet at the proposal of the Minister of Environment. Each agency has a Board, a user assembly and a council to ensure broad participation by various stakeholders in its decision-making process, both in planning and operations. There are a total of 15 Basin Agencies in Spain for rivers that flow through more than one
autonomous community. If a river runs entirely within the territory of an autonomous community the water administration of the respective autonomous community, instead of one of the basin agencies, is in charge of managing its water resources. This is the case in
Galicia,
Catalonia, the
Balearic Islands, the
Canary Islands, the
Basque country and
Andalusia. While basin agencies do not provide water and sanitation services, they play an important role in determining the framework for the provision of such services.
Service provision Service provision is the responsibility of more than 8,000 municipalities. Municipalities can provide services directly or through a municipal public company (54% of market share), or through
concessions to a mixed
public-private company (13%) or a private company (33%). In some cities water supply is the responsibility of a company, while sanitation services are provided directly by the municipality. This is the case, for example, in Barcelona. The main water service provider in Spain is Aguas de Barcelona (
Agbar), a private company that provides water services to about 13 million people in more than 1,000 localities under concession contracts. Sewer services are provided to 8.25 million people in 365 localities, and wastewater treatment is carried out for 9.3 million people in 445 localities. Its main competitor is Aqualia. The largest public water company is Canal Isabel II that serves the metropolitan area of Madrid. The government of the Madrid region plans to sell 49% of the shares of the company to private investors since 2008, but has not done so until early 2015.
Corruption In February 2013, the director of Agbar’s Aquagest concession in
Santiago de Compostela was jailed because of alleged bribes to municipal officials to ensure the renewal of his firm's contract. In June 2014 25 prominent Valencian politicians and administrators were charged with "fraudulently obtaining €23 million between 2004 and 2009 by inflating the cost of treating sewage sludge from metropolitan Valencia’s wastewater treatment plant", operated at the time by the public company EMARSA, a subsidiary of the regional wastewater company EMARSA. there were numerous ongoing investigations into alleged corruption in the awarding of municipal water contracts. In January 2016, top executives of the Spanish water companies Acciona and FCC were arrested amid these investigations. Furthermore, the Director General and other senior employees of the government water procurement agency Acuamed were arrested. Acuamed, an agency under the supervision of the Ministry of Environment, is in charge of major infrastructure programs financed by the central government, including desalination plants.
Reform proposals It is common practice in Spain that municipalities legally request upfront payments (canon) when awarding water concessions. These funds are not used for water infrastructure, but to generate revenue for the municipality. Also, not all contracts are awarded through competitive bidding. For example, in 2012 the Barcelona metropolitan authority awarded a 35-year concession worth an estimated €330 million to Agbar without a competitive tender. Roque Gistau, president of the Spanish water and sanitation association (AEAS), says that the current system to award contracts must be reformed. He calls for the abolishment of the Canon because it distorts the market. He also calls for the establishment of a water regulator such as the ones existing in England and Portugal. == History and recent developments ==