WRITTEN QUESTION E-0685/03

by Marie Isler Béguin (Verts/ALE), José Mendiluce Pereiro (PSE)and Alexander de Roo (Verts/ALE) to the Commission

(7 March 2003)

Subject: Spanish National Hydrological Plan, Structural Funds and cost benefit balance

The Commission is considering the Spanish Government's request for EU co-funding for the planned construction work on the National Hydrological Plan (NHP) and, in particular, the schemes for transfering water from the Ebro to the Barcelona metropolitan area and the Spanish south-east coast.

A group of scientists(1) claims that the economic cost-benefit outcome of these transfers would be negative in both cases, namely EUR 2 204,02 million, if the cost of improving the transferred water for urban use or the costs of climate change are not taken into account. If these latter costs are included, the figure rises to EUR 3 556,34 million. In view of this, the scientists suggest alternative formulas for water exploitation and management(2), based on managing demand rather than increasing supply, and reflecting a sustainable development policy taking account of the coast's load capacity and the need for Integrated Coastal Zone Management, as recommended by the Commission itself.

A recent Berkeley University study also confirms doubts as to the socio-economic viability of these water transfers, endorsing the criticisms of the Spanish university scientists referred to above, and criticising the lack of a financial study which would provide a firm answer to the question of who would pay and how payment for these transfers is to be guaranteed. The same study cites similar projects in the USA which were major financial disasters(3).

According to Regulation (EC) No 1260/1999(4), structural intervention in major projects such as the Ebro water transfer infrastructures need to be based on analysis of the costs and the socio-economic utility of such projects, stating the forecast amount of use and the foreseeable effect on the development of restructuring of the region concerned.

1. Does the Commission not believe that the NHP water transfer policy has no solid base as far as cost-benefit analysis is concerned, and that alternative proposals should therefore be taken into account, before authorising co-funding from the Structural Funds and the ERDF in particular?

2. Would the Commission be prepared to use the monies requested by the Spanish authorities for the Ebro transfers to alternative measures such as those cited in this written question?

(1) Arrojo Agudo P. and others, Análisis y valoración socioeconómica de los trasvases del Ebro, WWF European Office, September 2002.

(2) For the Barcelona metropolitan area: increase the efficiency of urban networks, reduce demand by means of domestic and industrial good practice programmes and, as a last option, desalinate sea water. For the Spanish south east: control illegal irrigation operations, put in hand a socio-environmental programme for converting irrigated land, develop a water bank which would allow the transfer, on a market basis under government supervision, of concession or property rights between private individuals, increase the efficiency of urban networks and, also as a last resort, desalinate sea water.

(3) A. Horne & others, A technical review of the Spanish National Hydrological Plan (Ebro river out-of-basin diversion), Fundación Universidad Politécnica de Cartagena, 7 January 2003.

(4) OJ L 161, 26.6.1999, p. 1.

Answer given by Mr Barnier on behalf of the Commission

(30 April 2003)

In accordance with the subsidiarity principle, it is the competence of the Member States to select the projects to be co-financed by the Structural Funds programmes.

Nevertheless, Member States are obliged to notify those projects requesting community co-financing, and whose cost exceeds the EUR 50 million threshold laid down in Article 25 of Council Regulation (EC) No 1260/1999(1). These projects will have to comply with all the requirements requested for major projects and in particular, Article 26 of Council Regulation (EC) No 1260/1999, as well as with any other relevant applicable Community legislation.

(1) Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds OJ L 161, 26.6.1999.