The Government will pay €100 million to settle the ATLL dispute.

BarcelonaThe Government and Acciona have finally reached an agreement to put an end to the conflict sparked by the failed privatization of Aigües Ter-Llobregat (ATLL), according to what was announced this Friday. The Vanguard and ARA has been able to confirm from sources within the Catalan government. Thus, the Generalitat will pay the construction company controlled by the Entrecanales family just over 100 million euros (of which 95 million are compensation and approximately 8 million are interest).

This agreement between the parties, however, will require the approval of the Supreme Court, which is the judicial body that was supposed to resolve the appeal that the construction company had filed claiming compensation from the Generalitat. Once the High Court gives its approval, it will end a long conflict that began in 2012 when the Catalan government decided to grant a concession for the ATLL service, in the midst of cutbacks due to the financial and debt crisis, in what was the largest privatization ever undertaken by the Generalitat.

The compensation now agreed to definitively settle the dispute will be added to the 377 million euros that the government of Pere Aragonès already paid to ATLL. Acciona and its partners obtained the ATLL concession when Artur Mas was head of the Catalan government and Lluís Recoder was regional minister. The contract was awarded in late 2012 for a period of 50 years and a price of 1 billion euros. Acciona initially paid almost 300 million, but the case was taken to court.

The High Court of Justice (TSJC) annulled the concession, which was ratified by the Supreme Court, establishing that the company should be compensated. The Catalan government, headed by Pere Aragonès,made a first payment to ATLL of 377 million eurosBut Acciona and its partners filed a claim, also seeking compensation for lost profits, that is, for the money lost due to the end of the 50-year concession, which is the one now agreed upon.

Total impact of €480 million

The company controlled by the Entrecanales family claimed up to 900 million euros in compensation when the courts annulled its concession. With the agreement reached, the government closes the dispute, with a total cost of approximately 480 million euros, thus avoiding aimpact on public coffers exceeding 1 billion eurosin the event that the courts accept Acciona's initial claim (900 million) plus legal interest.