The European Investment Bank (EIB) has approved a substantial €175 million loan to bolster water infrastructure across Spain’s Costa Del Sol. This investment, directed towards Acosol the public utility managing urban water systems in western Málaga, marks a pivotal step in addressing the region’s water challenges.
The first tranche of €75 million has already been signed, initiating a comprehensive program to modernize drinking water supply, sanitation, and water reuse infrastructure. This initiative will benefit approximately one million permanent residents with demand peaking at over 1.4 million during the summer tourist season.
Key Infrastructure Upgrades
The investment will fund a range of critical upgrades, including the modernization of water production, transmission, and storage facilities. Additionally, wastewater treatment plants and sewerage infrastructure will see significant improvements. Over 20 kilometers of sewer collectors, affected by leakage and seawater infiltration, will be replaced, while more than 30 kilometers of drinking water pipelines will be rehabilitated.
A new service reservoir will be constructed at the Río Verde drinking water treatment plant and reclaimed water distribution networks will be expanded to promote water reuse. The project also incorporates energy efficiency measures such as renewable energy generation for self-consumption at the Marbella desalination plant.
Addressing Water Stress and Climate Change
The Costa Del Sol faces significant water stress, exacerbated by climate change and recurring droughts. This investment aims to improve the resilience of water infrastructure by reducing water losses, expanding water reuse, and enhancing system performance. By doing so, the program seeks to strengthen adaptation to drought and climate change while ensuring a reliable water supply for future generations.
The EIB’s funding is part of its broader Water Resilience Programme which plans to invest €15 billion between 2026 and 2027 to strengthen water security and promote sustainable water management across Europe. In Spain, EIB financing for water-related projects reached a record €570 million in 2026, reflecting continued support for improving water resilience and climate adaptation.
Supporting Acosol’s Investment Plan
The financing will support Acosol’s €348 million investment plan, approved in 2026 following successive droughts in the region. This program aims to enhance water and energy efficiency, improve service quality, and deliver new infrastructure. The EIB loan will provide €175 million towards its implementation, ensuring that the utility can address growing water challenges effectively.
Through this funding, the EIB continues to support essential infrastructure projects that improve environmental sustainability and help communities adapt to the growing challenges of climate change. This investment not only enhances the quality of life for residents but also ensures the long-term sustainability of water resources on the Costa Del Sol.
