EIB invests €430m in Madrid’s water infrastructure modernisation
Image courtesy Canal de Isabel II
The European Investment Bank (EIB) has granted Canal de Isabel II in Madrid, Spain, a €430 million ($467.8 million) loan for investment in projects aiming to modernise and expand water supply and wastewater treatment infrastructure.
Canal de Isabel II, the Community of Madrid’s public sector entity responsible for managing the region’s integrated water cycle, will use the loan to unlock investment to help improve the water supply in the region and make management more efficient and climate resilient.
The projects set to receive financing are expected to improve the coverage, quality and resilience of integrated water services in the Madrid region.
Other planned projects aim to improve drinking water production, strengthen networks and pipes to cut water losses, digitalise infrastructure management, increase energy efficiency and invest in the wastewater reuse network.
All of the investments will be made within the Community of Madrid.
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Canal de Isabel II’s work covers all phases of the water cycle: collection, treatment, supply, urban drainage, purification and reuse. It was founded 175 years ago to supply water to the city of Madrid, now serving over 7 million people in the region.
The company manages facilities including 13 reservoirs; a transport and supply network stretching over 18,000 km; a sewerage network of over 16,000 km; 73 stormwater detention vaults; 155 wastewater treatment plants; and a reclaimed water network of over 700km.
In addition to managing the integrated water cycle, Canal generates highly efficient clean energy at its facilities. It has more installed capacity than any other company in the Community of Madrid, with 110MW.
The investment package from the EIB is part of the more than €2 billion ($2.2 billion) planned through 2030 in the new Canal de Isabel II Strategic Plan, which will be allocated to vital projects and infrastructure to guarantee long-term service quality.
In 2024, the EIB Group made record investments in water management infrastructure in Spain, providing up to ten times more than the average it has invested in previous years. Specifically, the EIB Group signed €12.3 billion ($13.4 billion) in new financing for more than 100 high-impact projects in 2024.
