Spain: Water management reform could attract Euro 15.7 bn in investments by 2021
The water sector needs a new regulatory framework to attract investment in its modernization. Structural reform of the water sector would also create 23,700 jobs and generate Euro 13.3 billion in cost savings. A comprehensive reform of Spains water management model would attract Euro 15.7 billion in investment over the next seven years and create 23,700 new jobs, according to a new report by PwC for Acciona, entitled Water Management in Spain: Analysis of the Sectors Current Situation and Future Challenges. The report estimates that water sector reform would have an aggregate impact of Euro 12.6 billion to GDP. Other benefits include an estimated Euro 2.5 billion in savings from the elimination of wasteful or inefficient water consumption and an additional Euro 13.3 billion in cost savings from efficiency gains and reduced water leakage from broken pipes. Moreover, CO2 emissions would be reduced by nearly two million tons by 2021. The main challenges affecting the water sector in Spain include water scarcity, an investment deficit compared to the EU average, a weak regulatory framework and the absence of a nationwide water market, according to the report.