The Catalan Water Agency (ACA) has its accounts very well healthy; even surprisingly very well sanitized. This body dependent on the Generalitat has a treasury surplus of 540.76 million euros according to the report of its 2024 budgets. The sum draws attention taking into account the notable deficiencies in infrastructure and the insufficient pace of investments in the water cycle in Catalonia in recent times (supply infrastructure, sanitation and others...).
ACA accounts store a small (or large) fortune. The Agency has its own accounts and over the last few years it has been accumulating a large cash surplus which, as of December 31, 2022, the last closed year for which annual accounts are available, reached 653,911,252. euros. This liquidity stood at 540.7 million at the closing of the accounts in April. Of the total sum, a part corresponds to the treasury itself while another 250,000,000 euros are short-term deposits.
This treasury surplus has been increasing thanks to contributions from the water fee paid by domestic users, industries and water companies.
This cash surplus is surprising to many experts familiar with these accounts, since it contrasts with the insufficiency of the investments carried out in recent years to promote hydraulic works and sanitation. At least, the investment rate is much lower than the income obtained from the water fee that users pay in the bill.
Catalonia has a very well-oiled system for obtaining resources to self-finance the water cycle, but the administrative machinery is less diligent in investing those resources or does not show at least the same degree of effectiveness, according to coincident assessments.
The ACA has received between 408.3 million (in 2013) and 466.35 million (2020) from the water fee, which explains the surplus. 96% of the ACA's income comes from royalties.
The report itself of the preliminary draft budget of the ACA of 20024 recognizes this situation. He admits that until 2019, this company “had to face a significant volume of debt, so non-financial provisions had to be considerably lower than current income.”
However, once the entire debt was repaid during 2019, “as of 2020, for various reasons, the volume of investments has not reached the level that income allowed, which has meant that between 2020 and 2022 year after year the remaining treasury has been increasing”
As a consequence of the hydraulic works that had to be carried out to face the previous drought (2007-2008), the ACA contracted a large debt with the banks, something that slowed down its activities and was a heavy burden that lasted until 2017 and 2018. Thus, in 2013, this debt was still 1,054.617 million euros and was gradually reduced (910.57 million in 2014; 502.054 million in 2016, and 185.16 million in 2018) until it was completely paid off in the year 2019.
During those years he dedicated his financial capacity to ending his finalist investments. But since 2019, the debt is closed; and despite this, the administrative machinery continues to be reluctant when it comes to undertaking the necessary investments that have continued to be insufficient. The result is that a cash surplus has been generated that many consider somewhat atypical for a public administration that has its own income and that should be used to address pending actions.
At the end of 2022, all of these accumulated resources are in the hands of half a dozen banking entities and 250 million are in short-term deposits.
On the other hand, in the treasury as of 2022 there was a total of 212,487,486 euros from the so-called 'cash pooling' (common or shared cash) of the Generalitat, resources that have been left at the disposal of the Generalitat, which has been able to use this fund to respond to the financing needs that it has considered appropriate. That box belongs to the ACA, in any case.
Sources from the Department of Climate Action explained to this newspaper that “almost all of the remaining treasury is affected”; which means that “it is not even free to dispose”, but rather that (almost everything) “is committed to a specific investment or expense item.”
Specifically, the 2024 draft report indicates that of the remaining 540.76 million, 356.75 million have “application” (have some type of allocation) and 184.01 million do not have any application. However, among those items with "application" or committed in 2023 there is one of 82.7 million euros that corresponds to an expense charged to the 2022 budget that has not been executed and there is also a loan to the company ATL (which must be amortized after of one year) worth 130.53 million, which would increase the sum of money not effectively used as investment.
The Department of Climate Action justifies the situation by also arguing that, according to what is determined by the Organic Law of Budgetary Stability and Financial Sustainability of Public Administrations (Montoro law of 2012), the ACA, as a public entity, “cannot compromise any type investment if you do not have the budget reserved for its liquidation.” The fact is that "the law does not allow debt" to the ACA and the Intervention does not allow this fact to occur, so, as it is concluded, "all investments, lines of subsidies and agreements with water operators and managers in low (sanitation and supply, basically) must have their item reserved as a remainder until it is liquidated.”
Many of these agreements are also multi-year, and “in addition, the ACA reserves investments destined for the local world for a 3-year 1 extension while waiting for the subsidized works to be certified with enough time to carry them out.”
But there are voices that are very critical of this situation. “This treasury surplus is generated because there are investments that are budgeted, but are not being executed, so they remain pending for subsequent years,” indicate people who have analyzed these accounts.
Experts see it as justifiable that in years of heavy debt, the excess resources of the canon are used to repay the debt. They were years in which investments plummeted and resources for sanitation were also – in some years – much lower than they should have been. But the situation has changed, and does not correspond to the new economic and financial logic, they indicate.
“It is incredible that with all the investment capacity available we are reaching this critical situation,” say the same sources, also concerned about the delays in many of the works of the emergency plan approved by Parliament law in May. of 2023.
Meanwhile, Catalonia is already immersed in the third planning cycle of hydraulic works (those that define the period 2022-2027), and the pending structural works are almost the same as those already mentioned in the previous hydrological plans (2009-2015). and 2016-2021) and where the same critical scenarios and the same threats that have taken shape today in an urgent manner were described. For this reason, it is considered incomprehensible that with the income generated in these years the pending works have not materialized and the current precariousness of resources has been reached, marked by generalized restrictions that have been intensified in various areas with the ultimate goal of preserving provisions for domestic use.
The same sources highlight not only the low volume of investments in recent years, but also the low level of execution of what was budgeted, given the final settlement shown in the ACA's annual reports.
In 2019, real investments (by the Generalitat) and capital transfers (money given to local administrations to develop their infrastructure) totaled 32,029 million euros, after having achieved a degree of execution of 51. 06% for real investments, those actually made by the Generalitat and 28.5% for capital transfers to local entities.
In 2020, the total amount of investment made was 56.5 million euros, with execution degrees of 55.56% and 24.58% respectively for these two situations.
In 2021, the investments made were 86,253 million (with execution of 50.3% and 19.18% respectively).
And in 2022, a total of 87,339 million were invested (after a liquidation degree of 43.65% for real investments and 24.28% for capital transfer). Capital transfers refer to works that end up being carried out by local entities, such as the Metropolitan Area or the consortia of municipalities of Besòs or the Costa Brava).
Various sources consulted attribute the shortage of investments to the lack of construction projects. In fact, large hydraulic works projects included in the hydrological planning are not drafted and many of the works included in the urgent measures plan approved by the Parliament in May 2023 are still pending execution.
The time in which investments could not be made should have been dedicated to carrying out projects, the same sources add. Now is when the drafting of the projects for the Tordera II and Cubelles/Foix desalination plants is being carried out, whose works must be completed in 2028 and 2029.
The most important hydraulic infrastructures that the Generalitat has pending are the two large desalination plants (Tordera II in Blanes and Cubelles/Foix) as well as other modernization or adaptation works linked to the public company, such as the new artery from Cardedeu to Barcelona (water from the Ter), the renewal of the filters in the Cardedeu water treatment plant or the improvements in the Abrera water treatment plant. The new conduit of the brine collector must also be undertaken. A first section was built, from Castellgalí to the sea (executed in 2007), but the upper branches remain.
And the expansion of the collection of underground flows in the Besôs (in Trinitat) is pending, which requires a new channeling of the Rec Comtal (which surfaces with underground flows at the confluence of the Ripoll and Besòs rivers, in Montcada).
And the plan for the regeneration of the treated water in the lower section of the Besòs must be undertaken, the reuse of which is still pending.
In terms of wastewater purification, there is no need for large facilities, but it is necessary to increase investments in replacement. Maintenance suffered cuts in the years of debt and it is estimated that expenses on these items should increase. “The cuts have been reversed, but not to the extent required by the needs of these infrastructures,” they say.
As has been said, the ACA has received between 408.3 million (in 2013) and 466.35 million (2020) through the fee, while ordinary exploitation and sanitation activities, and other actions related to the environment total between 157 million of euros (in 2013) and 193.2 (in 2019).
