Justification of public investment initiatives on water transfer systems as an instrument for water balances in Spain: the case of the Júcar–Vinalopó water transfer system
ABSTRACT
One of the most controversial issues in recent years in water management has been finding a balance between available resources and water needs related to certain territories. The changes brought about by a new awareness over the need to preserve the environment, the social perception of the ownership of the river channels, the need for adjust financial costs arising from the waterworks and the compliance with European standards urgently require redesign of water supply policies in force at this time. The Júcar-Vinalopó water transfer, considered as an historic aspiration for many years in the region, has been regarded as a key element for solving the depletion of groundwater in a large area located in the southeast of the Iberian Peninsula, mainly for irrigation purposes. In this paper we present an approach to the economic aspects related to the implementation of the project, its investment and financing arrangements and the question of the subsequent management with the impact of the well-known “recovery cost principle", highlighting the current difficulties in carrying out projects of this size, due to severe limitations, as social and economic conditions of the transfer.
One of the most controversial issues in recent years in water management has been finding a balance between available resources and water needs related to certain territories. The changes brought about by a new awareness over the need to preserve the environment, the social perception of the ownership of the river channels, the need for adjust financial costs arising from the waterworks and the compliance with European standards urgently require redesign of water supply policies in force at this time. The Júcar-Vinalopó water transfer, considered as an historic aspiration for many years in the region, has been regarded as a key element for solving the depletion of groundwater in a large area located in the southeast of the Iberian Peninsula, mainly for irrigation purposes. In this paper we present an approach to the economic aspects related to the implementation of the project, its investment and financing arrangements and the question of the subsequent management with the impact of the well-known “recovery cost principle", highlighting the current difficulties in carrying out projects of this size, due to severe limitations, as social and economic conditions of the transfer.
Cite this paper
nullSevilla, M. and Torregrosa, T. (2011) Justification of public investment initiatives on water transfer systems as an instrument for water balances in Spain: the case of the Júcar–Vinalopó water transfer system. Agricultural Sciences, 2, 518-525. doi: 10.4236/as.2011.24067.
nullSevilla, M. and Torregrosa, T. (2011) Justification of public investment initiatives on water transfer systems as an instrument for water balances in Spain: the case of the Júcar–Vinalopó water transfer system. Agricultural Sciences, 2, 518-525. doi: 10.4236/as.2011.24067.
References
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[1] OFWAT (2007) The completed acquisition of Thames Water Holdings Plc by Kemble Water Limited. A position paper by Ofwat, May, London. [2] Torrance, M. (2009) Reconceptualizing urban governance through a new paradigm for urban infratructure Networks. Journal of Economic Geography, 9, 805-822. doi:10.1093/jeg/lbn048 [3] Taibilla Channels Association (2009) Annual Report 2008. http://www.mct.es/ [4] Molina, A. (2010) Spanish water transfers regulations. Diario La Ley, 7366, 15-17. [5] Megginson, W.L. and Netter, J.M. (2001) From state to market: A survey of empirical studies on privatization. Journal of Economic Literature, 39, 321-389. doi:10.1257/jel.39.2.321 [6] Sevilla, M., Torregrosa, T. and Moreno, L. (2010) Groundwater and the tragedy of the commons in El Vinalopó. Estudios de Economía Aplicada, 28, 302-322. [7] Torregrosa, T. (2009) Water management in the region of the Marina Baja (Alicante). Topics of the Valencian Parliament, 19, Cortes Valencianas, Valencia. [8] IGME (2004) Potential storage possibilities of the Júcar-Vinalopó waters in provincial underground reservoirs through artificial recharge. Simulation of water resources management in the Medio Vinalopó. IGME and Provincial Council of Alicante, Madrid. [9] Torregrosa, T. and Sevilla, M. (2010) A socioeconomic model for managing water resources in Alicante, Southeast Spain. Water International, 35, 442-455. doi:10.1080/02508060.2010.506258 [10] Valencian Regional Government GVA (2000) Operational integrated programme for Valencian Region 2000- 2006. ESF, Economic Affairs Department, Valencian Regional Government, Valencian. [11] Aguas del Júcar SA (2001) Agreement between the users of the Júcar-Vinalopó and AJSA. General Assembly of the CGU-Medio Vinalopó and Alacantí and the Alto Vinalopó CGU. [12] Central Board of Vinalopó and l’Alacantí and Marina Baja Water Consortium Users (2002) Statutes. Http://juntacentral.es/sobre.htm [13] MMA (2007) CHJ and AJSA Agreement. Ministry on Environment, Spanish Government, Madrid. [14] Olmstead, S.M. (2010) The economics of managing scarce water resources. Review of Environmental Econom- ics and Policy, 4, 179-198. doi:10.1093/reep/req004 [15] River Júcar Hydrological Demarcation (CHJ) (2009) Report on the status of the Article 2 conditions. CHJ. [16] River Júcar Hydrological Demarcation (CHJ) (2007) Monitoring of Jucar River basin management plan: Synthesis. Water Planning Office. [17] MMA (2004) Continental water on the European Union. CEDEX MMA, Madrid. [18] River Júcar Hydrological Demarcation (CHJ) (2009) Methodology and results of the demands estimations. Technical Reference Paper, Territorial Area of the River Júcar Hydrological Demarcation, CHJ. [19] River Júcar Hydrological Demarcation (CHJ) (2003) EIB response report on JV infrastructures. CHJ. [20] River Júcar Hydrological Demarcation (CHJ) (2007) Júcar-Vinalopó. Report on the Status of the Article 2 Conditions, CHJ.