Juan G. R. Water investments require detailed economic studies.
Alicante, Spain, 09/05/2006
The investment plan in water of the Valencia region, aimed at: the construction of the Jucar Vinalopo transfer, desalination plants, improvement of hydraulic works, sewage plants, collectors, dams, modernization of irrigation and other water projects, currently exceed the 1800 million euros, of which the biggest contribution corresponds to the State company Acuamed, with an investment of 1130 million, on the other hand, the Ministries of Agriculture and Environment will allocate to the modernization of irrigation 456 million and the Generalitat Valenciana will invest 351 million euros in the modernization of irrigation, reuse and wastewater treatment.
It is estimated that the amount of investment for the hydraulic development of region will increase significantly during 2007 and the aggregate value of investments exceed 2200 million. From the foregoing it is noted that there is a broad willingness hydraulic of Spanish State and the autonomy government of the Valencia Community in trying to solve the problems of water shortage in the Community, which threatened continuously to the agricultural sector, which already has millionaires missed and that deficit affects at a lesser amount the urban and industrial sector, which it is prioritized the water needs for reduce the drought effects to a minimum.
The implementation plan of waterworks is now overdue, as they have launched a few works and the same should be finalized by mid-2008, making it necessary to speed up the projects and make a systematic monitoring of the implementation plan of themselves, in order to ensure the flow anticipated savings of water and power to meet the projected water demand of the people and the different economic sectors.
The waterworks have different purposes and common, it is necessary to conduct a detailed economic analysis of each of them and together, valuing independently: the depreciation of investments, the costs of operating, the awards and social transformations induced by the construction of the works, or lost profits that give rise buildings that are expected to run, the period of recovery the investments, different technical economic indicators, as well as energy consumption of desalination plants, pumping stations, repumping and others.
It must evaluate alternatives and choose the most profitable line of the state and the interests of users. The risk is not doing an adequate selection and choose solutions with low cost-effectiveness, which brought as a result: higher prices for water used by the population and farmers, increased costs of agricultural production, increased energy consumption, consequently reduced profitability of waterworks and the increase in the prices of agricultural products that will have to acquire consumers, as well as obtaining products uncompetitive in an increasingly globalize market, which requires a reduction in energy costs and production costs, with the aim of achieving adequate economic efficiency and sustainability.
The personal experience in this type of study indicates that the assessments of water solutions must be performed by specialist groups of: projects of different hydraulic works, hydrology, hydrogeology, geology, soil science, agronomy, physical planning, environment, aqueduct, economy and other specialists needed to provide new approaches to enable a better assessment of the current situation and prospect analyzed, in addition to counting the technical service laboratories in the various specialties. That makes it possible for speeding up the solution of technical problems in the shortest time possible and achieves greater economic efficiency and hydric of the goals being pursued.
Spain is among the European Union countries with more reliance on energy products, and should therefore be an accurate way to assess energy consumption, since the price of oil is rising and agriculture is a high consumer. Moreover it is necessary to construct works that were recovered in a short period of time or medium, so that the State can provide as quickly as possible of these funds to develop other economic regions of the country. The value of investments for water has a great weight, it is necessary to carry out a thorough economic analysis of the various works, in order to achieve a more rational use of financial, hydraulic, material and human resources.