The Lanzarote Water Consortium will submit to the Extraordinary General Assembly on February 12 the dismissal of the appeals for reconsideration filed by Canal Gestión Lanzarote in relation to the recognition of investments executed within the framework of the concession contract, as it has been proven, through technical and legal reports, that a relevant part of the actions alleged **does not meet the justification requirements demanded in the tender documents.**
The president of the Water Consortium and the Cabildo of Lanzarote, Oswaldo Betancort, underlines that “the Consortium is acting with rigor, transparency, and legal backing to defend the general interest and prevent economic recognitions that do not comply with legality from being consolidated”.
Canal Gestión committed in its offer to execute a concrete plan of mandatory investments, quantified and scheduled. The technical report carried out by the Consortium concludes that **a substantial part of those investments has not been executed** or has not been duly justified according to the specifications, with an underinvestment exceeding 21 million euros out of the 54 committed by the concessionaireThe contract also set technical performance targets for the network. The Water Consortium's report reflects losses exceeding 50 percent, well above the maximum foreseen threshold of 30 percent, which evidences **deficient management, lack of maintenance, and non-compliance with the exploitation plan**In the same session next Thursday, the dismissal of the appeal filed by Canal Gestión against the agreement that declared the payment of 1.5 million euros undue and ordered its reimbursement will be put to a vote, a decision that has express certification from the Assembly and legal reports that support the claim of said public funds that the political leaders of the previous term deposited with Canal Gestión without going through the Pricing Commission
Rate update
The agenda also includes the proposal for updating the tariffs of the integral water cycle corresponding to the 2025 fiscal year, in accordance with the formula provided for in the concession contract, in order to submit, if appropriate, the agreement to the Canary Islands Price Commission for its assessment.
It should be remembered at this point that the Contentious-Administrative Chamber of the Superior Court of Justice of the Canary Islands issued rulings favorable to Canal Gestión on November 21, 2017, and May 14, 2025, recognizing its right to update tariffs according to the formula provided in the concession contract, although said updates were never applied due to being rejected by the Canary Islands Price Commission, which in resolutions adopted in 2024 and 2025 decided not to authorize the increases, understanding that the necessary conditions for their transfer to users were not met when water losses continued to exceed 50 percent.
In this context, the Lanzarote Water Consortium Assembly next Thursday will address a new proposal for tariff updates, based on a report prepared by an external economist expert in public prices, which analyzes the real costs of production and distribution of supply water and technically supports the possible tariff revision in accordance with said costsThe Assembly will also be informed of the document submitted by the Gestagua company "with the intention of obstructing the possibility of assignment of the contract that the Consortium is exploring".
“All these actions respond to a clear roadmap: to assign responsibilities, protect public funds, guarantee legal certainty, and lay the groundwork for a new water management model that ensures real investments and adequate service for the citizens of Lanzarote and La Graciosa,” according to the Minister of Waters of the Cabildo and vice-president of the Consortium, Domingo Cejas.