Spain signals long-term commitment to public-private cooperation in water sector talks with Veolia
Spain’s Prime Minister, Pedro Sánchez, has met at the Moncloa Palace with Estelle Brachlianoff, CEO of Veolia, to discuss technological transformation in the water sector, the group’s plans in Spain, and the growing challenges posed by climate change. The meeting was also attended by Rafael Villaseca, President of Veolia Spain, and Manuel de la Rocha, Director of Spain’s Office for Economic Affairs and G20 Coordination.
The meeting takes place at a particularly demanding moment for Spain’s urban water systems. Structural pressures linked to aging infrastructure and tighter European regulation are converging with the accelerating impacts of climate change, as prolonged droughts place increasing stress on water supply and sanitation services.
The meeting reinforces the recognition of public-private collaboration as a key lever to drive the modernization of the sector and ensure the long-term sustainability of services
Climate resilience featured prominently in the discussion. References to system resilience and energy efficiency reflect the reality facing several regions under acute water stress, including parts of northeastern and southern Spain, where water management has shifted from a strategic concern to an operational emergency for utilities and authorities alike.
Beyond its institutional framing, the meeting carries a clear political signal. While no specific agreements or investment announcements were made, it underscores the Spanish government’s explicit endorsement of public-private cooperation as a necessary pillar for modernising water services and ensuring long-term system sustainability. Implicitly, it also sends a message of regulatory continuity and investment stability, a critical factor for capital-intensive infrastructure with long return horizons.
The water PERTE as a central policy instrument
A core topic of the meeting was Spain’s Strategic Project for Economic Recovery and Transformation (PERTE) for the digitalisation of urban water management. The programme is designed to mobilise close to €1 billion in public funding to accelerate digitalisation, improve efficiency and strengthen resilience through data-driven management and advanced monitoring.
The rollout of the PERTE comes amid an annual investment deficit of over €4 billion, making continuity of funding as critical as mobilizing resources
Implementation is proving progressive and demanding. Projects range from single-municipality initiatives to large-scale schemes led by regional consortia, supra-municipal entities, regional public operators and public-private ventures. This diversity enables scale and adaptability but also introduces significant coordination, governance and technical complexity, which is shaping the pace at which funding is translated into fully operational projects.
The PERTE is also unfolding against the backdrop of upcoming EU requirements on urban wastewater treatment, which are expected to further increase investment pressure on water systems in the coming years and reinforce the need for early planning and technological anticipation.
A structural investment gap remains
Despite the importance of European recovery funds, the PERTE is widely viewed within the sector as an accelerator rather than a complete solution. Structural investment needs continue to exceed current spending levels by more than €4 billion per year, even after accounting for the efforts already made by operators.
The challenge, therefore, is not only mobilising capital, but ensuring long-term investment continuity, linking funding, governance and economic sustainability in a coherent framework capable of supporting sustained asset renewal.
Operators and execution capacity
During the meeting, Sánchez highlighted the role played by private operators in deploying efficiency technologies, digital solutions and water reuse, particularly in medium-sized and smaller municipalities where direct public investment capacity is more constrained.
Veolia enters this dialogue as one of Spain’s leading water operators, providing services to over 13 million people across approximately 1,100 municipalities. Its established position in drinking water, wastewater and advanced asset management, combined with strong digital capabilities, places the group among the actors best positioned to deliver complex, large-scale modernisation projects under the PERTE framework.
Beyond the specifics of this meeting, the message resonates internationally: water has become a strategic economic and political priority. Technical consensus is broad; the real test lies in translating that consensus into sustained decisions that align regulation, financing and operational capacity in the face of mounting climate and regulatory pressures.