2005 - 2006 - Pinsent Masons Water Yearbook 2012

PORTUGAL PART 2: COUNTRY ANALYSIS
Sewerage and sewage treatment
Year 1980 1990 1996 1998
Tertiary 0% 0% 0% 2%
Secondary 2% 11% 25% 26%
Primary 0% 9% 13% 14%
Sewerage only 33% 34% 17% 23%
Not connected 65% 46% 45% 35%
Population
Total (2003, million) 10.4
Total (2015, million) 10.5
In urban areas (2003) 68%
In urban areas (2015) 78%
In urban agglomerations (2015) 68%
Spending needs
Portugal has enjoyed €1.45 billion in Cohesion funding for environmental projects between 1993 and
2002, albeit with a dramatic tailing off in 2002. Compliance work from 2000 to 2006 will cost Esc800
billion (€4 billion) and even with a maintained level of Cohesion funding, private sector capital of
Esc300 billion is needed. Overall, Esc270 billion is needed for expanding piped water provision to at
least 95% of the population, while Esc530 billion is required for sewerage and sewage treatment.
Urban services
% Water 97%
% Sewerage 95%
% Sewage treated 85%
Private sector participation legalised
Private sector involvement was specifically outlawed in 1977. The 1993 water policy reforms created
conditions for the quasi-privatisation of the water market. Municipalities are allowed to privatise their
services at their own pace, while retaining ownership of the assets. Privatisation has been erratic to
date because of the public and political expectations of lower prices. Political pressure for some
effective form of privatisation will be maintained because of Portugal’s relative dependence on EU
funding for water and sewerage compliance work. Until 1998, public control of water operations was
retained via a 49% private sector holding cap.
Freshwater
Total (1998, km³) 38.0
Per capita (1998, m 3 ) 3,878
Withdrawals (1990, km³) 7.3
For domestic use (1987) 15%
For industry (1987) 37%
For agriculture (1987) 48%
Privatisation prospects
Approximately 80% of the population is covered directly and 91% indirectly by two groupings
accounting for 268 municipalities, IPE Aguas de Portugal and EPAL. EPAL (Empressa Portugesa das
Aguas Livres) serves water to 0.31 million people in Lisbon along with a number of small contracts in
other areas. EPAL has been in existence since 1867. The Government has invited foreign
companies to consider taking a stake in EPAL to finance part of its compliance programme. ADP
serves 70% of the country’s population through 14 water supply and 14 wastewater treatment
companies and has been valued at €2-3 billion.
163 Pinsent Masons Water Yearbook 2005 – 2006