2005 - 2006 - Pinsent Masons Water Yearbook 2012

SPAIN PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
Agbar gained 22 new water provision and sewerage contracts serving 109,928 people, along with 25
water provision contracts serving 294,121 people, 22 wastewater treatment contracts serving a PE of
180,048 people and a number of sewerage contracts.
Acquisition of Ferrovial’s water and wastewater activities
In July 2004, Ferrovial sold its water activities to Agbar for €43.3 million. These consist of 14
concessions for water and wastewater services to 217,480 people in 32 municipalities, rising to
450,000 during the summer. Contracts for some 50,000 people were gained during 1998 and 1999
and for a further 150,000 during 2000. This business was mainly built up between 1998 and 2000
and consists of 130,000 customer accounts generating revenues of €16.3 million in 2003. The main
towns served with water or wastewater by Ferroser are: Ponferrada and San Andrés del Rabanedo
(Castilla-León), Estepona, Ubeda and Vélez Blanco (Andalucía), Poio and O Barco de Valdeorras
(Galicia), Plá de Mallorca (Balearic Islands), Guadalemar (Extremadura), and Castañeda and Cartes
(Cantabria).
Partial sale of Aguagest Sur
50% of Aquagest Sur was sold to Unicaja and Caja Granada in July 2005 for €73.5 million. Agbar will
retain the rest of the company’s equity. Aguagest Sur was founded in 1991 and is responsible for
water and sewerage services for 43 municipalities in Andalusia, serving 1,194,535 people.
Four stakes were acquired during 2002 from Endesa for a total of €25.7 million: Interagua (40.0%),
Emasagra (12.5%), Aguasvira (15.0%) and Aguas de Aragon (40.0%).
The consolidated turnover for industrial water customers in 2000 was €16.5 million, with an aggregate
figure of €53.2 million.
Agbar has developed a two pronged international water contract strategy:
• In partnership with Suez: Major contracts in Spanish speaking economies in Latin America.
• On its own: Medium sized contracts in Latin America that are not large enough to interest Suez.
This includes the Interagua partnership for contracts in Spain and Latin America with more than
60,000 inhabitants. Interagua is now 100% held by Agbar after Endessa sold its 39.95% stake
to Agbar for €16 million in 2000.
Agbar, number of people supplied in Spain and internationally
Country Water Sewerage Total
Spain 12,790,000 13,380,000 16,000,000
Argentina 9,070,000 6,250,000 9,070,000
Brazil 730,000 500,000 730,000
Chile 5,450,000 5,350,000 5,420,000
Colombia 1,100,000 850,000 1,100,000
Cuba 1,800,000 0 1,800,000
Mexico 650,000 650,000 650,000
Uruguay 100,000 100,000 100,000
Total outside Spain 18,900,000 13,700,000 18,900,000
Global Total 31,690,000 27,080,000 34,900,000
These figures include Aguas Argentinas, and other ventures in Latin America that also involve Suez-
Lyonnaise. Agbar is currently concentrating on secondary cities in Brazil (Suez is only seeking
contracts with the leading Brazilian water utilities), Ecuador, Uruguay, Chile and MexiCo. According to
Agbar, the company served water to 24.192 million people internationally (all in Latin America, apart
from Lydec) or 6,684,731 customers, along with providing sewerage services for 19,876,057 people.
Outside Spain, the company operates 31 water treatment works, serving 133 population centres,
along with 53 wastewater treatment works, serving 130 population centres, with a treatment capacity
(in population equivalent terms) of 10,759,183.
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Pinsent Masons Water Yearbook 2005 – 2006