El Canal de Isabel II 西班牙马德里自来水公司.doc

The World Bank Group Canal de Isabel II A Strongly Performing Public Water Utility Case study drawn up by Abel Mejía, Yoko Katakura and Carlos Vélez Between 1985 and 2000, CYII’s revenue rapidly grew from around 10 billion pesetas (some 62 million USD) in 1985 to 50 billion pesetas (approximately 278 million USD) in the year 2000. However, by the year 2000, as it neared a market share of close to 100% in the Autonomous Region of Madrid, the rise in the revenue of CYII began to slow down at the rate of 1% a year. The net profit margin of CYII has been increasing, which is not necessarily positive for a state-owned company unless the surplus is used for the public benefit. Some 10 years ago, when long-term concession contracts for water services began to attract major international operators, CYII attempted to expand its business in Latin America by bidding on a number of long-term concession contracts, without success. Following this, after a decision by the regional government, CYII once again began to focus on the Madrid region and Spain. While continuing to expand its main business within the Autonomous Region of Madrid (Comunidad Autónoma de Madrid, or ‘CAdM’), CYII gradually added new business lines, such as small-scale hydroelectric generation, communications services and a water concession in the city of Cáceres, outside the Madrid region. At present, following years of successful expansion within the CAdM, the regional government has authorised CYII to venture further afield, and it has embarked on successful expansion into the countries of Latin America. It presently has a New Business Unit which now handles this development. Water in Spain: A Key Development Issue Water is scarce in Spain. Only 9% of the 110,000 Hm3 of available water resources can be used in its natural condition due to significant regional and seasonal disparities between the supply and demand of water. On average, Spain has access to 2800 m3 of water per capita, a figure that is highe