Jerez de la Frontera Council has signed an agreement with the legal representatives of Aqualia Gestión Integral del Agua S.A., and Tratamiento Industrial de Aguas S.A, AQUALIA, for the administration of the water supply for a period of 25 years.
Aqualia will pay a fee of €80.1 million for the privilege, with 50% payable within two months of signing the contract and the remainder due within one year. Aqualia are also obliged to carry out improvement to the water supply to the value of €1 million.
The decision was taken bearing in mind the huge debt owed the Council, estimated at around €1 billion.
Many municipalities have already followed the route of semi-privatising essential services, such as water and cleaning, through concessions and joint venture companies, these being viewed by many as merely a means of obtaining interest free loans.