PPP MODEL FOR WASTEWATER

TREATMENT IN ARAGON

Mr. Rafael Izquierdo

Director

Water Institute of Aragon

Zaragoza. Spain

ARAGON STATISTICSDemographic Data

SPAIN ARAGON

• Area:

• Population:

• Density:

• Municipalities:

505,988 km2 47,720 km2 (10%)

42,717,064 inhab 1,230,090 inhab (3%)

84.42 inhab/km2 25.78 inhab/km2

8,107 730 1,545 agglomerations

LEGISLATION

European

Directives

91/271/EEC

2000/60/EC

Spanish Royal Decree

Law 11/95

Aragon Law on Water

Management 6/2001

OUR CHALLENGES

Environmental

Social: seasonal peaks

Scope

Economical

Time Scale

Sustainability

PROJECT: PEDTechnical Aspects

P. E. D.

PLAN ESPECIAL DEPURACIÓN

PROJECT: PEDTechnical Aspects

Up to 2004 PED 2004-08

WWTPs 37 132

SEWERS Km 142 500

MUNICIPALITIES 41 171

EQUIVALENT

INHABITANTS1.8 million 831.216

PERCENTAGE

TREATED61% 29%

PROJECT: PED 2004-2008Technical Aspects

1980

0%

2004

61%37 WWTPs

2015

100%2008

90%169 WWTPs

PROJECT: PEDOverall Model

Public-Private Partnership

Economic Regime

Financial Strategy

PED OVERALL MODELSummary

Users

WATER INSTITUTE

OF ARAGON

(Promoter)

Financial

institutions

/Banks

Sanitation Tax

(environmental tax)

Concession

Contract

Risk transfer

•Demand risk

•Construction risk

•Availability risk

Concessionaire

Wastewater

treatment

services

Senior Loan

Payments

PED OVERALL MODELPublic-Private Participation

Public Works Concession for a period of 20 years

Administrative

Structure Design

Supervision

Sanitation Tax

Collection

Payment to

Concessionaires

PUBLIC PRIVATE Financing

Construction

Operation

Maintanance

Contractual Risk

Sharing

PED OVERALL MODELAdministrative Design

Public Administration Responsabilities

Land Procurement

Tendering Process

Political Role

PED OVERALL MODELEconomic Regime

Sanitation Tax

Contractual Fares

PED OVERALL MODELSanitation Tax

Cost recovery

Polluter pays

Territorial Equality

PED OVERALL MODELContractual Fares

No minimum guaranteed

Variable Payment to contract holders according to volume of wastewater treated

PED OVERALL MODELContractual Risk Sharing

Demand Risk

Availability Risk

Construction Risk

PED OVERALL MODELFinancial Strategy

Public Works Concession Contract

Project Finance

PED FINANCIAL MODELInvestment

€1.062 Billion in 4 years

More than 3 times EU entire LIFE programme for 2005-

2006 period

Spain´s total investment in WW management for the

1995-2005 period was €1.14 billion

PED Budget for 2006 was 22% of Aragon´s total

budget

It would require 15 years of Water Institute of Aragon

total Budget

PED BENEFITS

Environmental

Social

Economical

Health

Sustainability

PED BENEFITSEnvironmental

Improved conditions in specially protected

areas or sensitive to Drought

Natural vegetation: Fluvial Thickets

Acuatic species: invertebrates, salmonids

(trout), amphibians, reptiles

Improved life conditions in habitats

PED BENEFITSSocial

Reverse trend of depopulation in Aragon:

more even distribution of population

Territorial equality: same service at the same

price

Stable and Long-term job creation, attracting

further industrial investment in depressed

areas

Increased number and quality of amenities and services: Tourism and Recreational

activities

PED BENEFITSEconomical

Will generate €4.7 into Aragon´s Economy

One third of this amount into sectors related

to wastewater treatment

Two thirds will come from demands created

in other sectors of the economy

Each Euro spent on improving water quality

PED BENEFITSHealth

Improved water quality

Decrease in water-related diseases

PED BENEFITSSustainability

True Sustainable Development

WHY PED IS UNIQUE?

Scattered population in small

agglomerations

Economical effort

Magnitude

Short time scale

Financial & Management model

Benefits

Thank you

www.aragon.es

Please, visit Aragon to see the results