02/05/2025 Santiago Lafuente: "The important thing is not who provides the service, but how it is provided"

Madrid, early April. On the main floor of Aqualia's headquarters in Las Tablas, there is a serene optimism, that of a company moving forward with a firm step. Before starting the interview, amidst jokes with the always efficient communications team, the topic of Real Madrid's last match inevitably comes up: a resounding 4-4 ​​draw, decided—once again—in extra time. Santiago Lafuente, a self-confessed Real Madrid fan, smiles knowingly.

Here, however, there are no agonizing comebacks or controlled chaos. Here, things are built with method, vision, and solidity.

And that's precisely what Aqualia is conveying right now: confidence in what it does and how it does it. Consolidating its leadership in Spain. Meaningfully expanding into international markets. Without fanfare, but with results.

This is the third time an Aqualia CEO has graced the cover of iAgua Magazine , but this interview strikes a different note. It's the first with Lafuente as the top executive. A natural, almost inevitable appointment, which confirmed what many in the sector already suspected: that his track record, his knowledge of the business, and his understanding of water management were gradually placing him in that position.

Lafuente leads with calm, clarity, and an ambition that needs no headlines. In this conversation—open, direct, and without shortcuts—he reviews his first year at the helm of the company and describes, with equal parts firmness and serenity, how Aqualia is preparing for what lies ahead: true sustainability, deep digitalization, and operational excellence with a global focus.

Question: After just over a year at the helm of Aqualia as CEO, how do you assess this period? What strategic priorities do you have for the future?

The balance sheet is very positive. 2024 has been an exceptional year for Aqualia, not only in financial terms—the company achieved its best result ever—but also because it has consolidated a clear strategy for sustainable and balanced growth. We have made progress across all our key areas: international expansion, digital transformation, sustainability, and financial strength.

The fiscal year closed with revenue of €1.675 billion and EBITDA of €425 million, representing double-digit growth. For the first time, international net income surpassed domestic net income, and revenue outside Spain now represents 45% of the total, compared to 23% in 2017. It's important to note that this international growth has not come at the expense of the Spanish market, where we have also recorded positive growth, even above the CPI, in a highly consolidated and competitive environment.

Throughout the year, we have strengthened our presence in strategic countries such as Georgia—where our first three-year tariff plan was approved—and the United States, where we now operate steadily from our base in Houston. Furthermore, the 2024-2026 Strategic Sustainability Plan was approved, we have revised our financial framework, and a $300 million green bond was issued in Georgia to finance the Company's Investment Plan, aligning the financing with Aqualia's sustainability objectives.

Looking ahead, Aqualia will maintain its focus on municipal and infrastructure concessions, which remain the core of our business model. We are a global water management company, with an operational presence in all phases of the cycle: engineering, energy and operational efficiency, concessions, industrial water, construction, and operation and maintenance. We will continue to promote digitalization and sustainability as strategic pillars for the coming years.

Question: Aqualia has been recognized as one of the leading companies in the global water sector. What recent decisions have been key to consolidating this position?

This recognition isn't the result of a single initiative, but rather the result of years of sustained work and a clear strategy: to grow in a balanced way, be competitive in each territory, and act as a local company wherever we operate. This has been one of the keys to our consolidation as a global operator.

In recent years, we've entered new markets with a well-thought-out logic. The operation in Georgia has been one of the most important milestones: we supply 1.4 million people in the capital and surrounding areas, now under a three-year tariff framework and with an approved investment plan. We've issued a green bond in that country and strengthened our financial and operational presence.

We've also made progress in the United States, which represents an enormous challenge due to its regulatory complexity, but where we're already established in Texas with a local team and a vision for longevity. Another key focus has been France. We started with a small acquisition in Île-de-France and today we operate steadily in several regions, opening new branches and consolidating our own model in a highly competitive market.

Added to this is the modernization of our financial framework, which has allowed us to issue sustainable financial instruments and strengthen our credibility with investors and governments. All of this without losing focus: concessions, infrastructure, and a comprehensive operating model, from engineering and construction to maintenance and intelligent service management.

I would say that what has established us is not just our size or turnover, but our ability to add value wherever we are. We are not a company that seeks one-off contracts: we want to stay, integrate, and operate with the same high standards anywhere in the world.

Question: How do you assess the current situation in the urban water sector in Spain, from an operational and regulatory perspective?

For some time now, I've been concerned that the sector in Spain could be left behind. And when I say "falling behind," I mean in terms of investment, infrastructure, and technology. We have a consolidated network, but also many unmet needs.

We are already experiencing the consequences of climate change. With almost permanent droughts and increasingly frequent floods, we need a management model based on facts, not just diagnoses.

I think we've made significant progress in terms of regulations: the new Urban Wastewater Directive, the reuse decree, new controls on drinking water, BREF documents... But all of this isn't accompanied by a clear financing model. As a country, we can't afford to let many actions go unexecuted with each revision, despite the immense overall effort required to approve the Hydrological Plans.

On the positive side, I would say that digitalization is advancing very rapidly. The PERTE has been, and continues to be, a great project. The Ministry's approach has been very successful. The horizon is 2026, and I sincerely believe it will mark a turning point in water management in Spain.

However, all of this will only work if accompanied by a real infrastructure renovation. There's no point in having smart systems if the pipes are more than fifty years old. We must combine intelligence with investment in all the elements that make up the entire cycle. And this requires courage in decisions: in tariffs, in financing, and in public-private partnership models.

Question: In recent years, Aqualia has renewed a high percentage of concessions. What factors do you consider key to maintaining the trust of both governments and citizens?

The key word is, without a doubt, trust. It's the foundation of everything. In 2024, in Spain alone, we have renewed, extended, or renewed 366 contracts in various forms. This reflects mutual and sustained trust with the administrations we have worked with for years.

One of our strengths is our capillarity. We operate in large, medium-sized, and small municipalities, and we apply the same service philosophy regardless of size. We are committed to offering the same level of quality to a town of a thousand inhabitants as to a large city, and that requires structure, commitment, and efficiency.

The way we organize our operations is also fundamental. We have been working for some time with operational centers that manage several municipalities in an integrated manner from a single platform. This combined management allows us to generate synergies, become more efficient, and consequently, more competitive. And this economic, but also social and environmental, competitiveness, without losing quality, is essential to renewing the trust of the administrations.

Citizens are also a key player. We like to talk about customers, but above all, we're talking about people who trust every day that the service will work. In addition to technical expertise, proximity, responsiveness to incidents, and direct communication are equally important factors.

Now, all of this is only sustainable if one is competitive. Trust is essential, but if one doesn't offer a sound economic proposal, it's not enough. We strive for that balance: to be accessible, efficient, technically sound, and, at the same time, economically attractive to governments.

Question: The recent approval of the new European Urban Wastewater Treatment Directive will lead to a profound transformation of sanitation across the continent. What implications does this have for Aqualia, both in Spain and in other countries where you operate?

The new Directive represents a major challenge for all of Europe, and especially for countries like Spain. In Europe, more than 500 facilities currently in operation will require a complete overhaul. But beyond the figures, what is significant is the paradigm shift: the scope of application is expanded—affecting urban areas with more than 1,000 inhabitants—and the requirements are aligned with the European Green Deal, focusing on energy efficiency, circularity, and emissions reduction.

For us, as operators, this means being prepared both technologically and financially. We've been working on this for years. One example is the Lleida wastewater treatment plant, which has already achieved energy self-sufficiency. But it's not just about solar panels or biogas: we're talking about conceiving plants as biofactories, capable of generating energy, recovering byproducts, and minimizing their environmental footprint.

Another major challenge lies in small municipalities. We cannot repeat past mistakes, building infrastructure that cannot be maintained. That's why we develop simple, low-cost, and easy-to-maintain solutions. For example, we are working on the INTEXT project, located in Talavera de la Reina (Toledo), where we test technologies adapted to rural environments with long-term viability criteria.

None of this will be possible without the decisive involvement of the administrations. The reality is that public budgets, neither in Europe nor in Spain, can finance this transformation on their own. Co-financing, infrastructure concessions, and more ambitious public-private partnership models will be necessary.

Furthermore, the Directive coincides with another key challenge: reuse. In Spain, a Royal Decree already requires many wastewater treatment plants to be equipped with tertiary treatment, and this will require new investments. It's an exciting challenge, but it requires funding. Without resources, hope turns into frustration.

I'm concerned that if this funding isn't guaranteed, implementation will drag on for years and create inequality between countries, or even between regions. We have the technology, the knowledge, and the solutions. What we can't afford is for this potential to remain on the shelf due to a lack of resources.

Question: Aqualia is actively participating in several initiatives within the PERTE (Water Cycle Digitalization Program). What lessons is the company learning from this experience, and how do you think it will transform service management in the coming years?

For us, the PERTE has meant acceleration. We already had a prior history of digitalization, with the development of our Aqualia Live platform, which integrates mapping, sectorization, SCADAs, fleet management, fault detection and prediction, asset management, work orders, and so on. The PERTE is allowing us to advance in months what would have taken years.

We are currently developing five projects: Campo de Gibraltar, Asturias, Ciudad Real, Cantabria, and the Canary Islands. Together, the investment amounts to €43 million. In each project, we apply solutions tailored to the region, but with a common vision: network control, sensorization, data integration, and anticipation capabilities.

The design of PERTE has evolved positively. Initially, it focused almost exclusively on smart meters, but the Ministry was able to reorient it toward a more profound transformation. Today, we're talking about complete platforms, channel control, digitized networks, and a strategy with real ambition.

Beyond technology, the impact is also cultural. At the time, we decided to integrate our IT department (Transformation and Innovation Department) into our Las Tablas headquarters, and this has generated a very enriching interaction between traditional and new profiles. Data analysts, mathematicians, physicists, and others are changing the way we think about service, and as a result, we're able to attract young and diverse talent.

The PERTE has also given visibility to urban water on the country's agenda. The sector has demonstrated technical capacity, agility, and commitment. Most importantly, if we continue along these lines, we will transform not only the tools but also the way we operate, plan, and anticipate.

Another important aspect is that the water PERTE has been one of the few projects in the recovery plan with more demand than funding. Each call has received between four and five times the available budget, something that has not occurred in other sectors. This demonstrates that the sector is prepared, has the technical capacity, and deserves continuity. Hopefully, it could be extended to include investments in the renovation of networks and critical infrastructure.

Question: Aqualia is present in 18 countries. Which represent the greatest opportunities for sustained international growth today?

Our international growth model is based on becoming local players wherever we operate. We don't seek one-off contracts or rotate through different markets: when we enter a country, it's because we want to build a platform and grow from there.

Our three major expansion centers are in the Americas, Europe, and the Middle East. In the Americas, we distinguish two areas: the United States, where we operate from Houston, and Latin America, where we are established in Mexico, Colombia, Peru, and Chile.

The United States is a complex market due to its state regulation, but it has significant potential. We have a primarily American team, and our goal is to double our presence in the short term, both in operations and maintenance and in concessions.

In Latin America, Colombia is a benchmark. We operate in four regions with a local structure. In Mexico, we are present in all segments of the water cycle (concessions, BOT, and operation), and in Peru, we recently won the award for our first BOT in the Chincha WWTP project. In Chile, we work in desalination related to the mining sector.

In Europe, our focus is on France. We started in 2019 in the Ile-de-France region and now operate in several regions. We have opened an office in Lyon and are planning new branches. We also maintain operations in the Czech Republic, Portugal, and Italy.

We have been operating in the Middle East and North Africa for over 15 years. We are present in Algeria, Egypt, and the Gulf countries. In Saudi Arabia, we operate two of the six clusters into which the National Water Company has divided the country and are supporting its evolution toward concessionary models.

Asia-Pacific is the only major region where we're not yet present. We're exploring opportunities in Australia or New Zealand, but we'll take our time and focus on permanence. We don't want to be a mobile company: we're looking for stable platforms that grow with a local focus.

That's our model: it's not just about adding countries, but about integrating into the territory. In every market where we operate—from Houston to Tbilisi, from Lyon to Lima—we want to be a company with roots, contextual knowledge, and the ability to generate sustainable value.

Question: In recent years, Aqualia has made significant acquisitions, such as the purchase of Municipal District Services in Texas and Georgia Global Utilities in Tbilisi. What role do these transactions play in your global strategy? Are you considering further acquisitions?

We always pay attention to the market, but when we make acquisitions, it's because we respond to a clear strategy. We're not looking to grow through volume or numbers. Our goal is to build platforms that allow us to grow organically, from within each country.

This is the case in France and the United States. In both, not only has a company been acquired, but a growth structure with a local focus has been implemented. In the US, we are transforming a company specializing in municipal districts so that it can also provide operation and maintenance services or work directly with municipalities. If opportunities arise that fit our model, we will consider them. But our focus on growth is not based on acquisitions.

We want to be a global company with a balanced model. In 2024, for the first time, international EBITDA surpassed domestic EBITDA, and revenue is already close to 50%. Beyond the relative weight, the important thing is that this growth is well distributed across different regions of the world.

Throughout this process, Spain remains fundamental. It's our foundation, where we have our headquarters, central services, and two key pillars: technology and engineering. We don't want international growth to be seen as a way out. On the contrary, it's about projecting a model that was born here and has proven effective and adaptable in very different contexts.

Question: Climate change is having increasingly visible effects. How do you experience this on a daily basis at Aqualia, and do you think the sector is prepared to address it?

We still have a lot to do. Climate change is no longer a theoretical debate: it's statistical evidence. We experience it every day in our operations, in different countries and contexts. And it requires immediate action and a long-term strategy.

Structural measures depend on global consensus: emissions reduction, energy transition, international commitments... But there are others we can implement now: mitigating impacts, adapting infrastructure, regulation, reuse, and desalination.

This year we have experienced extreme events in Spain, but also in other latitudes, such as the Czech Republic, where torrential rains have caused serious damage to our facilities. This is not a phenomenon unique to the Mediterranean; it is a global reality that must be addressed with concrete solutions.

The key is anticipation: hydraulic regulation, flood control, and early warning and control systems for heavy rains are needed. These tools don't require a large investment, but they do require planning, technology, and preventive vision.

We have three major fronts: reuse, desalination, and aquifer conservation. Moving forward on these fronts requires stable plans, clear financing, and bold decisions. We cannot allow projects like the expansion of the desalination plant in the Barcelona metropolitan area to be halted due to a lack of funding, now that the drought experienced in that area is fortunately easing. We will experience severe droughts again, and we must be prepared.

We also need to invest in reuse networks, tertiary services, and the separation of rainwater and wastewater. It's a matter of planning and accepting that these costs must be reflected in tariffs. That's the hardest part: accepting that providing a quality service comes at a price. In Spain, tariffs are well below those of other European countries, and that limits our ability to anticipate and maintain them.

We see this clearly when we compare ourselves with other European countries. In northern Europe, with water rates up to two and a half times higher, more is invested in infrastructure and less is spent on maintenance. In Spain, the opposite is true: little is invested and more is spent on maintaining what hasn't been renovated. This inertia must be broken if we want to move toward true water security.

In countries like the Czech Republic and Georgia, where we also operate, contractual models include infrastructure renewal in tariff planning. It's assumed and regulated, which provides stability. Georgia, for example, has highly structured technical regulation, with triennial tariff reviews based on audited investment plans and costs. Here in Spain, we often remain tied to short-term models where tariffs are discussed politically, and this ends up limiting the system's resilience.

Question: We're experiencing a profound digital transformation. How is this affecting Aqualia's professional profiles and internal culture?

I'm not afraid. And I'm not afraid because I see it every day: our teams are adapting very well. I don't perceive a digital divide between generations. What there is, however, is a need for ongoing training, for constant learning, but that happens with any structural transformation.

There are two changes that I consider key. The first is in the way we work. The traditional model in the sector was that each service operated as a fairly autonomous unit: a town, a city, or a region with its own team, its warehouse, its logistics. That has changed radically. Today, we manage services from operational centers that can be hundreds or thousands of kilometers away. Alerts arrive through algorithms, are automatically prioritized, and assigned based on efficiency criteria, not geographic ones.

The idea that service can only be provided from the provincial border is outdated. Today, a brigade can receive instructions to intervene 20 kilometers away... or 2,000 kilometers away. What matters isn't physical proximity, but technical and operational efficiency.

The second change affects the type of professionals we're recruiting. We've always had technical backgrounds, primarily engineers and water treatment specialists. But now we're adding mathematicians, physicists, data analysts—technological backgrounds that until recently weren't common in the sector. This is greatly enriching the organization.

This change is also attracting young, female talent, which is one of the greatest challenges we face. Women already dominate administrative, human resources, and communications departments, but there's still a long way to go in traditional technical profiles. The incorporation of new technology profiles is helping to rebalance this balance.

I sincerely believe that working in the water sector is a very attractive career opportunity. It's an environment with job stability, a clear purpose, and an increasingly technological dimension. And that makes it a much more stimulating option for the new generations.

Question: Water is an essential service, but it's often invisible to the public. How do you assess the sector's communication, and what role does Aqualia play in this area?

It's true that water services in Spain are highly valued, but also highly unknown. In the September 2024 CIS survey, water ranked 35th among citizens' concerns, with barely 1% of mentions.

We live in a country with permanent water stress and officially desertified areas, but citizens barely notice it. And there's a reason for that: it's a service that works, with little impact on household budgets—less than 1%—and that only becomes visible when something goes wrong.

The Spanish user turns on the tap and the water runs. But behind it all lies planning, investment, maintenance, innovation... and all of that goes unseen. Our challenge is to explain the value of this collective effort. To make visible what usually goes unnoticed.

To fulfill this educational and informative objective, Aqualia annually develops a global Communications Plan, which outlines the roadmap for our performance with different target audiences. Based on this document, the plan is adapted to the different countries where we manage the entire cycle, taking into account the specific characteristics of each region, but without sacrificing the company's core values. Based on these plans, we select channels and scale resources.

In Colombia, for example, the communication challenge is greater, so we have more extensive communication teams. Social communication is very important, so we work with community leaders whom we must report to directly, sometimes at their homes. The relationship is constant and closely linked to the social context.

We apply this glocal approach (global presence and local focus) in all countries. In Colombia, we communicate as Colombians; in France, we communicate as French. We adapt messages and channels, but the principle is the same: proximity, consistency, and transparency.

We also believe in sector collaboration. We participate in more than 50 national and international associations: AEAS, Water Europe, the Global Compact, and others that promote excellence in water management.

One example that excites us is the Step by Water alliance, which we have promoted from the beginning. It's a cross-cutting initiative that brings together companies from different sectors—urban water, beverages, ceramics, and industry—with a common goal: to put water efficiency and the circular economy at the heart of business action. It's beginning to gain traction in Europe, and we believe it has a long way to go.

Furthermore, I believe the sector has taken a step forward in institutional maturity. The old debate between public and private management is, in many ways, over. The important thing is not who provides the service, but how it is provided. And here, the key is excellence, transparency, investment, and a commitment to service.

At Aqualia, as at many companies in the sector—both public and private—there are thousands of professionals with an absolute commitment to the public interest. I think this message has resonated even at the political level, and that's positive for everyone.

Question: Finally, what are the main goals you would like to see Aqualia achieve by 2030?

The path is fairly clear, and the goals we set for ourselves as a company are ambitious, but perfectly achievable.

The first is to complete the transition to fully green and sustainable financing. We are very close to achieving this. Our framework already classifies virtually all of our investments as eligible, and we believe that all of the group's financing will soon be aligned with sustainable criteria. Beyond the financial cost, this is a clear demonstration of our commitment to the business model we aim to be.

The second major goal is the complete digitalization of our services. We've made a lot of progress, but there's still a long way to go. The challenge is to reach a point where we don't have to go out looking for leaks at night, but rather where we can prevent them in advance thanks to data analysis, pressure monitoring, and network automation. This level of control and efficiency is achievable, and we're working toward it.

We have also set very specific goals for energy efficiency. Currently, more than 46% of our electricity supply comes from renewable sources. A fact that illustrates this: in Georgia alone, we generate more than 350 GWh of hydroelectric power, equivalent to 70% of the total electricity consumption of our operations in Spain. Energy self-sufficiency is a strategic priority.

In terms of growth, we want to continue consolidating our position in key markets: Spain, of course, but also the United States, Latin America, France, and the MENA region. Specifically in the United States, the goal is to be established in three or four states by 2030. So far, we've already taken the first steps in cities like Houston, San Antonio, and Austin, and we'll continue to expand our presence in both municipal districts and operation and maintenance contracts.

And finally, there's a more structural objective: to expand our geographic presence. Asia-Pacific is currently the only major region where we don't have a presence, and we're carefully considering the steps we should take. We're in no hurry, but we do have a clear vision: to get there and stay.

I would also like to highlight the constant support of our shareholders, both FCC, represented by Grupo Carso, and IFM, who have backed all of our strategic decisions since 2017, even those that initially seemed more complex or ambitious. This trust has allowed us to move forward with stability and a long-term vision. Today, Aqualia is one of the most solvent companies in the world in the water sector, not only in terms of volume but also in terms of profitability, financial capacity, and commitment to a responsible growth model.

16/01/2025 ჯივიპიმ 2024 წლის საქმიანობის შედეგები შეაჯამა

MORE

26/07/2024 Georgia Global Utilities announces issuance of $300 Million Green Bonds

MORE

18/06/2024 ჯივიპის საგანგებო განცხადება - ჯივიპი მომხმარებლებს წყალს რეზერვუარების ალტერნატიული შევსებით მიაწვდის

MORE

17/06/2024 საგანგებო განცხადება - რა ვითარებაა წიწამურთან მდებარე მაგისტრალურ წყალსადენზე

MORE

07/06/2024 წყალმომარაგების სისტემის მოდერნიზაცია - Aqualia ჯივიპიში ევროპული სტანდარტების დანერგვას აგრძელებს

MORE