The European Investment Bank (EIB) has approved €175 million in financing for water infrastructure investments by Acosol, the public utility responsible for the integrated urban water management across the Western Costa del Sol in Spain’s Málaga province. The first tranche of the financing, worth €75 million, has now been signed.
The funding will support a programme to modernise and expand drinking water supply, sanitation and water reuse infrastructure across the 11 municipalities that make up the Association of Municipalities of the Western Costa del Sol. Around 1 million permanent residents are expected to benefit from the investments, with demand rising to more than 1.4 million people during the summer tourist season.
The planned works include upgrades to water production, transmission and storage facilities, as well as improvements to wastewater treatment plants and sewerage infrastructure. More than 20 kilometres of sewer collectors affected by leakage and seawater infiltration will be replaced, while over 30 kilometres of drinking water pipelines will be rehabilitated. The programme also includes the construction of a new service reservoir at the Río Verde drinking water treatment plant and the deployment of reclaimed water distribution networks to increase water reuse.
In addition, the project incorporates energy efficiency measures, including renewable energy generation for self-consumption at the Marbella desalination plant.
According to the EIB, the investments are designed to improve the resilience of water infrastructure in an area facing significant water stress. By reducing water losses, expanding water reuse and improving system performance, the programme aims to strengthen adaptation to drought and climate change while enhancing service reliability.
The investment forms part of the EIB Group’s Water Resilience Programme, which plans to invest €15 billion between 2025 and 2027 to strengthen water security, modernise infrastructure and promote sustainable water management. In Spain, EIB financing for water-related projects reached a record €570 million in 2025, reflecting continued support for improving water resilience and climate adaptation.
The financing will support Acosol's €348 million investment plan, approved in 2024 following successive droughts in the region. The programme aims to strengthen the utility's capacity to address growing water challenges by improving water and energy efficiency, enhancing service quality and delivering new infrastructure. The EIB loan will provide €175 million towards its implementation.
