The Extraordinary General Assembly of the Lanzarote Water Consortium has approved the extension for three more months of the suspension of the procedure for the termination of the contract for the concession of water supply, sanitation, and reuse services on the islands of Lanzarote and La Graciosa.
This decision, approved with the dissenting votes of the San Bartolomé, Tías, and Haría City Councils and the abstention of Yaiza, allows for the continuation of the processing, analysis, and study of the contract assignment proposal presented by Canal Gestión Lanzarote, in accordance with current regulations and with the aim of safeguarding the general interest and the proper provision of public service.
An investment of 32.6 million versus the 54.5 agreed upon
The Assembly also approved by majority the investments made by the concessionaire Canal Gestión Lanzarote under the concession contract, an agreement that allows for the validation of actions carried out within the integral water cycle and the verification of the degree of compliance with investment obligations in supply, sanitation, and reuse infrastructure in Lanzarote and La Graciosa.
"Today we approved the report on the recognized investments for Canal Gestión as a prior step, both for the eventuality that the assignment proposal prospers and for the termination of the contract. A necessary measure that legally supports the Consortium's position in any future scenario," according to the president of the Cabildo of Lanzarote and the Water Consortium, Oswaldo Betancort.
According to Betancort, "the Consortium's technical services are thoroughly analyzing the proposal presented to us by Canal Gestión. If that offer does not serve the interests of Lanzarote, regardless of whether it serves Canal's own interests, we will proceed with the termination of the contract. The general interest of the citizens of Lanzarote and La Graciosa will always come first."
An underinvestment of 21 million euros
According to the technical and documentary analysis carried out by the Water Consortium, Canal Gestión committed to investing 54,455,128 euros. However, the Water Consortium only considers investments worth 32,633,088.09 euros as "duly justified and validated," representing an underinvestment of 21,822,039.91 euros, almost 40% of the committed investment, according to the Water Consortium.
Among the main unexecuted or unjustified investments are the installation of isobaric chambers for energy recovery, the implementation of leak and fraud detection measures, the comprehensive renovation of the meter park, the modeling of the potable and reused water network, as well as various remote control, sectorization, and energy efficiency actions, considered essential for reducing losses and improving service
The report also notes significant deficits in adaptation works for reservoirs, improvements to treatment plants, reuse infrastructure, and technological modernization actions expressly included in the offer submitted by the concessionaire.
From the Lanzarote Water Consortium, it is emphasized that these data "evidence a structural underinvestment" that has had "a direct impact on the state of hydraulic infrastructures and on the quality of the service provided to the citizens of Lanzarote and La Graciosa," and that it constitutes "a key element in the analysis of the degree of compliance with the concession contract."
The Assembly also approved two inter-administrative cooperation agreements between the Lanzarote Water Consortium and INALSA. The first, aimed at technical assistance in hydraulic engineering and operation, and the second, intended for the Consortium to manage certain administrative procedures of the public company, with the objective of reinforcing the coordination, efficiency, and operational capacity of both entities.
