Spain Awards €21.83 Million Contract to Expand Vilagarcía de Arousa Wastewater Treatment Plant with EU-Funded Modernisation

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Augas de Galicia has awarded a €21.825 million contract for the design and construction of the expansion of the Vilagarcía de Arousa Wastewater Treatment Plant (EDAR) in Pontevedra. Co-financed by the European Regional Development Fund (ERDF), the project will increase treatment capacity, improve sludge processing and integrate renewable energy systems to support sustainable wastewater management in Galicia.

Introduction

Spain has taken another significant step towards strengthening its water infrastructure with the award of a major wastewater treatment project in Galicia. Augas de Galicia has selected a contractor to prepare the construction design and execute the expansion of the Vilagarcía de Arousa Wastewater Treatment Plant, addressing growing treatment demands while ensuring compliance with current and future environmental regulations.

The contract, awarded through an open procurement procedure under Directive 2014/24/EU, carries an estimated procurement value of €23.14 million, with the winning bid valued at €21.825 million. The project forms part of the Galicia ERDF Programme 2021-2027, with 60% of eligible expenditure co-financed by the European Union.

Why This Contract Matters

The existing wastewater treatment plant at Vilagarcía de Arousa has reached its operational limits and is no longer capable of adequately treating increasing wastewater volumes and pollutant loads. Expanding the facility is essential to maintain compliance with discharge standards, improve environmental protection and accommodate future population growth in the region.

Beyond increasing treatment capacity, the project introduces modern biological treatment technologies, upgraded sludge management facilities and renewable energy generation systems designed to reduce operational energy costs. The investment also supports the objectives of the European Green Deal and sustainable water management policies promoted across the European Union.

Contract Timeline

Contract Overview

The awarded contract combines detailed engineering design with full construction of the expanded wastewater treatment facility. The works include increasing hydraulic and biological treatment capacity, expanding sludge processing infrastructure and installing renewable energy systems capable of improving the plant's operational efficiency.

The upgraded facility has been designed to serve an equivalent population of approximately 99,404 inhabitants, with a design average flow of 15,639 cubic metres per day and a maximum flow capacity of 500 litres per second. Construction will be carried out while maintaining uninterrupted wastewater treatment services at the existing plant.

Key Contract Details

Project Scope

The contract covers both the preparation of the detailed construction project and the execution of the expansion works for the Vilagarcía de Arousa Wastewater Treatment Plant (EDAR) in Pontevedra. The objective is to address the existing plant's insufficient treatment capacity while ensuring continued compliance with environmental discharge requirements and accommodating future wastewater demand.

The project involves a comprehensive upgrade of the treatment facility, covering both the water treatment line and the sludge treatment line. Construction activities have been planned so that wastewater treatment services remain operational throughout the execution period, minimising disruption to existing operations.

A key feature of the project is the integration of renewable energy production systems to reduce the energy consumption associated with wastewater treatment. The upgraded plant is designed to serve an equivalent population of approximately 99,404 inhabitants, with an average design flow of 15,639 cubic metres per day and a maximum flow capacity of 500 litres per second.

The scope of works includes:

• Preparation of the detailed engineering and construction project.
• Expansion of the wastewater treatment plant's hydraulic and biological treatment capacity.
• Construction of a new pretreatment facility while maintaining existing operations.
• Installation of new hybrid IFAS biological reactors.
• Expansion of sludge thickening, digestion, storage and dewatering facilities.
• Construction of new secondary clarifiers and UV disinfection systems.
• Installation of biogas treatment, storage and energy recovery equipment.
• Implementation of renewable energy generation systems.
• Nitrogen removal treatment for dewatering process water.
• Demolition of obsolete infrastructure following completion of the new facilities.

About the Contracting Authority

Augas de Galicia is the regional public water authority responsible for water resources, wastewater infrastructure and hydraulic projects across the Autonomous Community of Galicia. Operating as a public body under the regional government, the organisation plans, develops and manages strategic investments aimed at improving water quality, environmental protection and public sanitation infrastructure.

For this procurement, Augas de Galicia acted as the contracting authority, conducting the tender through an open procedure in accordance with Directive 2014/24/EU and Spain's Public Sector Contracts Law. The project also forms part of Galicia's broader investment programme supported by European Regional Development Fund (ERDF) financing.

About the Organisations Involved

Augas de Galicia managed the procurement process, established the technical and administrative requirements, evaluated the submitted tenders and awarded the contract for the wastewater treatment plant expansion.

Copasa Infraestructuras, S.L.U. & Pesa Medioambiente, S.A. Unión Temporal de Empresas (UTE) was selected as the successful contractor. The joint venture will be responsible for preparing the construction project documentation and executing the complete expansion of the wastewater treatment facility.

Tribunal Administrativo de Contratación Pública de Galicia (TACGal) is identified as the review authority responsible for handling procurement-related appeals and legal review procedures associated with the contract award.

Procurement Analysis

The procurement demonstrates a design-and-build approach that combines engineering design and construction under a single contract. This integrated delivery model enables closer coordination between the design and execution phases, reducing implementation risks while allowing technical solutions to be optimised throughout the project lifecycle.

The evaluation methodology balanced commercial competitiveness with technical quality. While price represented the largest individual evaluation criterion at 51%, the remaining assessment focused on technical proposals, construction methodology, quality control, environmental management, project scheduling and engineering solutions. This reflects the contracting authority's emphasis on selecting a contractor capable of delivering a technically complex wastewater infrastructure project rather than relying solely on the lowest bid.

The project also aligns with European environmental priorities by incorporating renewable energy generation and improved wastewater treatment technologies. Supported through the ERDF under the Galicia Programme 2021–2027, the investment contributes to sustainable water management while helping regional authorities meet evolving environmental standards and long-term infrastructure requirements.

Additional Procurement Facts

• Country: Spain.
• Contracting Authority: Augas de Galicia.
• Project Location: Vilagarcía de Arousa, Pontevedra.
• Project Type: Expansion of a wastewater treatment plant (EDAR).
• Contract Type: Works.
• Main CPV Code: 45252100 - Sewage treatment plant construction work.
• Procurement Procedure: Open Procedure.
• Estimated Procurement Value: EUR 23,137,424.14 (excluding VAT).
• Awarded Contract Value: EUR 21,825,000.
• Contract Duration: 33 months.
• Winning Consortium: Copasa Infraestructuras, S.L.U. & Pesa Medioambiente, S.A. Unión Temporal de Empresas.
• Date Winner Selected: 26 June 2026.
• Contract Signature Date: 24 July 2026.
• Total Tenders Received: Eight electronic tenders.
• Tenders Submitted by SMEs: Seven.
• EU Co-financing: 60% through the European Regional Development Fund (ERDF) under the Galicia ERDF Programme 2021–2027.
• The procurement is covered by the Government Procurement Agreement (GPA).

Market & Industry Perspective

Investment in wastewater treatment infrastructure continues to be a major priority across Europe as governments seek to improve environmental compliance, increase treatment capacity and support sustainable water management. Ageing treatment facilities are being upgraded to meet stricter regulatory requirements while addressing growing urban populations and increasing environmental expectations.

The Vilagarcía de Arousa project reflects this broader trend by combining infrastructure expansion with advanced treatment technologies and renewable energy integration. The planned installation of hybrid biological treatment systems, expanded sludge processing facilities and energy recovery infrastructure demonstrates how modern wastewater projects increasingly focus on both operational performance and environmental sustainability.

The procurement also illustrates the importance of integrated design and build contracts for complex public infrastructure projects. By combining engineering design and construction within a single contract, public authorities can improve coordination, reduce implementation risks and accelerate project delivery while maintaining greater accountability throughout the construction process.

Economic Significance

With a contract value of EUR 21.825 million, the project represents a significant public investment in Galicia's water infrastructure and environmental resilience. The expansion will strengthen wastewater treatment capacity for Vilagarcía de Arousa while supporting long-term compliance with European and national water quality standards.

The project is further strengthened through 60% co-financing from the European Regional Development Fund (ERDF), demonstrating the European Union's continued support for sustainable infrastructure that improves water resource management and environmental protection. Such investments also generate economic benefits through construction activity, engineering services and the procurement of specialised equipment throughout the project lifecycle.

For the construction and environmental engineering sectors, the contract highlights continued opportunities in wastewater infrastructure modernisation. As governments invest in climate resilience, renewable energy integration and improved sanitation systems, contractors with expertise in hydraulic engineering, treatment technologies and sustainable infrastructure delivery are likely to remain well positioned for future public procurement opportunities.

Future Procurement Opportunities

The completion of this contract marks a significant milestone in the modernisation of wastewater infrastructure in Galicia, but it is also likely to generate future procurement opportunities linked to the operation, maintenance and optimisation of the upgraded treatment plant. While the contract award notice does not identify any additional procurements, projects of this scale typically create demand for specialist engineering, maintenance and equipment services during implementation and commissioning.

As Spain continues investing in sustainable water infrastructure and compliance with evolving European environmental legislation, suppliers specialising in water treatment technologies, renewable energy systems and environmental engineering should continue monitoring procurement notices issued by Augas de Galicia and other regional water authorities.

Opportunities for Suppliers

The Vilagarcía de Arousa expansion demonstrates the growing demand for advanced wastewater treatment solutions capable of improving operational efficiency while reducing environmental impact. Future opportunities are expected to favour suppliers with proven expertise in sustainable infrastructure and complex water engineering projects.

• Engineering consultancies specialising in wastewater treatment design.
• Civil engineering contractors experienced in hydraulic infrastructure.
• Suppliers of biological wastewater treatment technologies.
• Manufacturers of sludge treatment and dewatering equipment.
• Providers of renewable energy and biogas recovery systems.
• Suppliers of UV disinfection, pumping and process automation systems.
• Environmental monitoring, commissioning and operational support specialists.

What Businesses Should Watch

• Upcoming wastewater infrastructure investments across Galicia and Spain.
• Projects supported by the European Regional Development Fund (ERDF).
• Implementation of new European wastewater treatment regulations.
• Demand for energy-efficient treatment technologies and renewable energy integration.
• Expansion programmes aimed at increasing treatment capacity and environmental compliance.
• Future tenders involving water resource management and sustainable infrastructure development.

SpainTenders.com Procurement Intelligence

The Vilagarcía de Arousa project reflects the changing priorities of public infrastructure procurement across Europe. Rather than focusing solely on increasing treatment capacity, the investment combines environmental compliance, renewable energy generation and operational efficiency within a single integrated project. This demonstrates how modern wastewater infrastructure is increasingly being developed to support both climate objectives and long-term service resilience.

The procurement strategy also illustrates the value of design-and-build contracting for technically demanding public works. By assigning responsibility for both engineering design and construction to a single contractor, Augas de Galicia has created a procurement model intended to improve coordination, streamline project delivery and reduce implementation risks throughout the construction period.

Equally significant is the project's financial structure. Supported through substantial ERDF co-financing, the investment highlights how European funding continues to accelerate regional infrastructure development while encouraging sustainable engineering practices. For contractors and technology providers, this reinforces the importance of aligning technical capabilities with environmental performance and innovation when competing for publicly funded infrastructure projects.

Supplier Takeaways

• The contract supports the expansion and modernisation of the Vilagarcía de Arousa Wastewater Treatment Plant.
• The awarded contract value is EUR 21.825 million.
• The project combines engineering design and construction under a single design-and-build contract.
• Renewable energy generation and advanced wastewater treatment technologies form key components of the project.
• Seven of the eight submitted tenders were received from SMEs, demonstrating strong participation from smaller businesses.
• Future public investments are likely to continue focusing on sustainable water infrastructure and environmental compliance.

Key Takeaways

• Spain has awarded a major wastewater infrastructure contract to improve treatment capacity in Vilagarcía de Arousa.
• The project is co-financed through the European Regional Development Fund under the Galicia ERDF Programme 2021–2027.
• The upgraded facility will strengthen wastewater treatment performance while incorporating renewable energy systems.
• The procurement balanced competitive pricing with extensive technical quality evaluation.
• The investment supports long-term environmental protection, sustainable water management and regional infrastructure development.

Conclusion

The expansion of the Vilagarcía de Arousa Wastewater Treatment Plant represents an important investment in Spain's environmental infrastructure. By combining increased treatment capacity with advanced biological processes, improved sludge management and renewable energy generation, the project is designed to enhance operational performance while supporting long term sustainability objectives.

Beyond its immediate regional benefits, the contract demonstrates how European public procurement is increasingly supporting resilient and environmentally responsible infrastructure. For engineering companies, technology providers and construction specialists, the project offers valuable insight into the direction of future investments in the water sector, where technical excellence, sustainability and lifecycle performance continue to shape procurement decisions.

Source: TED European Union, Contract Award Notice, OJ S 145/2026, Notice No. 528960-2026.Contracting Authority: Augas de Galicia