- ACCIONA
- Press room
- News
- 2013
- April
- ACCIONA and BTG Pactua...
ACCIONA and BTG Pactual confirm the validity and continuity of the ATLL contra
04/01/2013ACCIONA and BTG Pactual have noted of the recent decisions taken by the Catalonia Superior Court of Justice involving the rejection of the interim measures lodged by, on the one hand, Sociedad General de Aguas de Barcelona (Agbar), and on the other hand by ACCIONA Agua and ATLL Concessionària of the Generalitat de Catalunya, in connection with the award of the management and public service provision contract of the Ter-Llobregat water supply network.
ACCIONA and BTG Pactual have noted of the recent decisions taken by the Catalonia Superior Court of Justice involving the rejection of the interim measures lodged by, on the one hand, Sociedad General de Aguas de Barcelona (Agbar), and on the other hand by ACCIONA Agua and ATLL Concessionària of the Generalitat de Catalunya, in connection with the award of the management and public service provision contract of the Ter-Llobregat water supply network. Given the situation created by these various court rulings and opinions that have been expressed and published in various media, ACCIONA and BTG Pactual, as leading partners of the consortium which has been awarded the current contract, are interested in stating the following:
- These court rulings have been enacted in the interim measures process lodged by the parties within the appeal proceedings instituted by them in connection with the award of the referenced contract and, therefore, do not determine the merits of the matter and are not in any way definitive. ACCIONA and BTG Pactual ratify that their offer meticulously meets all legal requirements in the tender process and all the specifications of the tender conditions. The partners are certain that this will be clearly evidenced in the course of the appeal proceedings which they have taken and furthermore the partners will take as many legal actions as necessary to this end, particularly against the resolution issued by the Catalan Contractual Recourse Administrative Agency (OARCC) on 2 January, 2013, whose legal validity is still challenged in court proceedings and pending final decision. As acknowledged by the Catalonia Superior Court of Justice, during said court proceedings, the conformity or defects of Agbar's tender offer with the tenders procedure requirements and antitrust legislation shall also be reviewed.
- The Ter-Llobregat water supply contract was awarded by the Generalitat de Catalunya on 6 November, 2012 to the ATLL consortium (led by ACCIONA Agua and BTG Pactual and including other minority companies representing private investors), which was also approved by the supervisory anti-trust authorities. Following that award, on 27 December, 2012 the signing of the relevant contract between said consortium and the Generalitat de Catalunya took place. At that moment the winning consortium disbursed the amount of €298,651,830.00 as first payment of the concession fee stipulated by the contract. This contract brings cost savings to consumers in Catalonia over €900 million during the whole concession period, compared to the main competitors` offer, Agbar.
- Pursuant to the contract signed on 27 December, 2012, ATLL has been continuously providing upstream supply of water since 1 January, 2013 in keeping with the stringent quality standards undertaken.
- The contract signed on 27 December between the Catalan Government and ATLL remains a legally valid and binding contract on the parties as of this date, as acknowledged by the Catalonia Superior Court of Justice upon rejecting the interim measures lodged by Agbar, which sought to suspend this contract. Consequently, ATLL reiterates its commitment to fulfil its contractual obligations and its interest in continuing performing the contracted service during the fifty-year duration of the concession. It likewise expresses its certainty that the Generalitat de Catalunya will likewise honour, as contract counterparty, the duties incumbent upon it.
- The continuity of the contract and the service also ensures significant public and social benefits resulting from the bid submitted by ATLL, which were positively recognized by the Generalitat de Catalunya during the tender process. These benefits were duly valued by the Generalitat de Catalunya during the tender award procedure, which judged it a superior bid to the only other proposal from Agbar. The benefits of ATLL's offer, include the following:
- ATLL's offer ensures a reduced water rate of €0.70/m3 during the 50 years of the concession, in contrast to the €0.79/m3 offered by Agbar. The average projected savings for consumers totals €17 million/year compared to the competing offer. The savings is over €850 million for the entire concession period.
- In addition, ATLL's offer involves a two-year reprieve for the progressive implementation of the proposed tariff, maintaining existing rates until then. Agbar's offer, however, proposed the application of its highest rate from the very beginning. This means that, during the years 2013 and 2014, the rates to be applied as specified by the ATLL offer would be about €0.65/m3 and €0.68/m3. If Agbar's proposal were to be accepted, the rate would be €0.79/m3, which would mean a higher cost for service users, exceeding €50 million in just two years.
- Moreover, ATLL's offer undertakes to leave all ATLL jobs intact throughout the fifty-year life of the concession, while the competing offer only ensured that those jobs would be guaranteed for a maximum of five years, being released from any commitment after this period.
- ATLL and its leading partners, ACCIONA Agua and BTG Pactual, express their firm belief in the guarantees of stability offered by the regulatory framework in Catalonia to the domestic and international investment community, and the Catalan Government's commitment to these general interest objectives, which will no doubt be articulated through their respect for the contract signed and the continuity of the contracted service.
View ACCIONA Social Networks