- The financing will make it possible to modernise and expand water supply and wastewater treatment infrastructure in the Community of Madrid.
- The investments are expected to make the water supply system more resilient and water management more efficient, with projects to improve drinking water production, cut water losses, digitalise infrastructure management and improve energy efficiency.
- The operation contributes to the EIB’s climate action and environmental sustainability objectives by promoting more efficient management of water, a natural resource of vital importance to Spain.
- 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.
The European Investment Bank (EIB) has granted Canal de Isabel II, the Community of Madrid’s public sector entity responsible for managing the region’s integrated water cycle, a €430 million loan for investment in projects aiming to modernise and expand water supply and wastewater treatment infrastructure in Madrid.
The loan will unlock investment directly benefiting residents, helping to improve the water supply in the region and make management more efficient and climate resilient.
Water supply and management improvements
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.
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.
This operation will make a significant contribution to the EIB’s climate action strategic priority, consolidating its position as the EU Climate Bank.
Background information
EIB
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.
The EIB Group, which also includes the EIF, signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.
All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
In Spain, the EIB Group signed €12.3 billion of new financing for more than 100 high-impact projects in 2024, helping power the country’s green and digital transition and promote economic growth, competitiveness and better services for its people.
High-quality, up-to-date photos of our headquarters for media use are available here.
Canal de Isabel II
Canal de Isabel II is the public sector entity responsible for managing the integrated water cycle in the Community of Madrid. Its work covers all phases of the cycle: collection, treatment, supply, urban drainage, purification and reuse. It was founded 175 years ago to supply water to the city of Madrid, and now its more than 3 000 employees work every day to serve over 7 million people in the region. It is an innovative company and a leader in its sector, receiving international acclaim for its management of the integrated water cycle and its environmental commitment.
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 700 km using this alternative resource to supply around 30 municipalities in the Community of Madrid. 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 110 MW.