The government is not discussing or even considering the privatisation of Portugal water supply industry according to the Environment Ministry in a statement released to clarify its current position.
The Wednesday statement from the ministry which oversees the company Águas de Portugal (AdP) read that "the Government's strategy is to restructure the water sector so as to provide greater social and territorial cohesion, environmental quality and economic and financial sustainability through the aggregation of multi-municipal systems."
Despite this 'management speak' nonsense the stated goal is clear enough - to have four regional suppliers for water and wastewater instead of the current 19 operating under AdP.
These four should be North, Central, Lisbon & Vale do Tejo, and the Algarve. This solution was put forward in April 2012 by Alfonso Lobato de Faria, the president of AdP, and seems to have acceptance.
This is bad news for potential buyers already identified, from France - Veolia and Degremont, and from Spain - Aqualia.
No other company with sufficient cash has put itself forward as a new owner of AdP which in 2011 was valued at €1 billion.
Leaving the door open, today the government issued a statement that excluded the water sector in draft legislation to authorise the government to legislate on the ‘safeguard regime’ for the country’s strategic assets. It considers that AdP already is adequately safeguarded.
