Sacyr wins Tenerife concession
- From: Vol 7, Issue 1 (January 2006)
- Category: General
- Region: Europe
- Country: Spain
- Related Companies: Sacyr
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The Spanish group pays €60 million for a deal worth €30 million a year.
Spanish construction company Sacyr Vallehermoso (SyV) announced at the end of December that it had won the contract to supply drinking water to Santa Cruz de Tenerife, the Canary Islands’ second largest city with a population of 205,000.
The company paid €60 million to take control of the municipal water company (Emmasa) for a 25-year period and it expects the deal to produce an annual turnover of around €30 million. The contract to supply drinking water includes an agreement to improve specific parts of the supply network, which distributed 17 million m3 of water in 2004. It also includes responsibility for operating the 21,000m3/d municipal desalination plant.
Although SyV is one of Spain’s largest construction companies, it has a relatively small presence in the Spanish water sector (it is a larger player in Portugal, where it supplies drinking water to 1.3 million people in 15 municipalities). This makes it a major player in the Canary Islands: it already supplies water to Las Palmas.