EIB Approves €430 Million Loan for Madrid Water Infrastructure Upgrades

Image source: Community of Madrid

Published on March 18, 2025

The European Investment Bank (EIB) has granted a €430 million loan to Canal de Isabel II, Madrid’s public water management company, to modernize and expand the region’s water supply and wastewater treatment infrastructure. The funding aims to enhance the resilience and efficiency of Madrid’s water systems, supporting climate action and environmental sustainability goals.

The investment will focus on improving drinking water production, reducing water losses, digitalizing infrastructure management, and increasing energy efficiency. These projects are expected to strengthen water resource management and ensure reliable services for Madrid’s population.

In 2024, the EIB significantly increased its investments in water infrastructure across Spain, allocating ten times more funding than in previous years. This loan aligns with the EIB’s strategic priorities, including climate action and sustainable development, reinforcing its role as the EU Climate Bank.

Canal de Isabel II, responsible for managing Madrid’s water cycle, serves over 7 million people and operates an extensive network of reservoirs, treatment plants, and distribution systems. The upgrades will further support the region’s transition to greener and more efficient water management practices.

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