ACCIONA Agua wins 120 million euro deal in Andratx (Spain)

The project will solve the longstanding problem of delivering integrated water cycle services to 5,000 residents in Andratx (Majorca, Spain).

This is the first contract awarded in Spain using the Competitive Dialogue procurement procedure, and is one of the biggest water management contracts awarded by the Balearic Isles regional government.

The Andratx (Majorca, Spain) city council has awarded ACCIONA Agua a contract for the construction and exploitation (36 years) of the integrated water cycle services for ten residential developments in the municipality, with a reference population of 5,000 inhabitants. These works, the first of their kind in Spain to be awarded using the Competitive Dialogue procurement procedure, represent an investment of 120 million euros, which includes the total cost of the works in each residential area and the finance portfolio for the works.

The city-hall backed works will provide wholly sustainable integrated water services in a part of Andratx that has long been affected by water shortages. The new services will guarantee the supply and treatment of water for the residents of the residential developments, and will control and withdraw effluent applying quality controls and taking care to avoid any possible impact on the environment.

Work is scheduled to get under way in July 2009 and will be divided into zones that will be completed individually, enabling residents to access services gradually but in the shortest possible time. The investment involved makes this contract one of the largest water management contracts to date in the Balearic Isles; in addition the project will be carried out by Majorca's main contractors and local workers, contributing towards the city's and the island's economic development by creating around 200 jobs over the next two years.

First contract awarded using the Competitive Dialogue procedure

In the 1960s the Andratx local authorities began to develop one of the city's major tourist locations, the Port of Andratx, comprising a number of detached-housing residential developments, top-flight hotels, and apartments and restaurants, as well as the nearby Camp de Mar golf course.

In order to attend to the growing needs of this urban development, in August 2008 the City Hall opened a public tender for the construction of the infrastructure for the services and their exploitation over a 36-year period. The unusual feature of this tender is that it applied the Competitive Dialogue procurement procedure, based on Spain's recently introduced Public Sector Contracting law (LCSP 30/2007). This is the first time that this new procedure has been used in a tender in Spain; there were nine bidders and the contract was finally awarded to ACCIONA Agua.

This procurement system allows custom-made solutions by means of a process of exchange of information and proposals with a group of companies that have requested to be pre-selected. By winning this contract, ACCIONA Agua has shown that is perfectly equipped to design and deliver end-to-end solutions that meet the technical, financial and service requirements of its clients with regard to water management services. Similarly, it highlights the Division's vocation to position itself as a partner for the institutions that award contracts, with a view to optimizing services for end-users.

ACCIONA is one of Spain's premier corporations and a world leader in infrastructure, energy, water and services in over 30 countries. ACCIONA's claim "Pioneers in development and sustainability" reflects its company-wide commitment to contribute to economic growth, social advancement and environmental balance. ACCIONA  leads its sector in the Dow Jones Sustainability Index, and reported 12.7 billion euros in revenues in 2008. The company is listed on the IBEX-35 index of the top companies in Spain (ANA.MC).