An unprecedented decision has been made on Lanzarote: the local water consortium unanimously voted for immediate intervention in the island’s water supply system and has begun the process of terminating the contract with Canal Gestión, a subsidiary of Canal de Isabel II from Madrid. The reason for this is persistent and systemic disruptions, which, according to authorities, have affected every stage of the water cycle and directly impacted the lives of around 200,000 residents.
Systemic disruptions and authorities’ response
In its official statement, the consortium emphasized that these are not isolated incidents, but large-scale violations across all segments: from desalination and distribution to treatment and reuse. According to the consortium, the contractor regularly failed to meet its obligations regarding repairs, maintenance, and investment, leading to the deterioration of key infrastructure and frequent water supply interruptions. Authorities note that the situation is worsening by the day, with damage affecting not only residents but also the environment.
Response from Canal de Isabel II and conflict of interest
Canal de Isabel II described the decision as unexpected and pledged to defend its interests by all available legal means. The company claims it has invested nearly 146 million euros in Lanzarote’s infrastructure and accuses the consortium of failing to fulfill its reciprocal investment obligations, as well as blocking the tariff review, which, according to them, was stipulated in the contract and confirmed by the court. In response, the consortium stated it had tried to avoid an abrupt break by proposing that Canal Gestión hand over management to a third party, but negotiations failed.
The contract, debts, and disputed terms
The contract with Canal Gestión was signed in 2013 for 30 years and required not only covering the debts of the previous operator Inalsa, but also large-scale investments in system modernization. However, in recent years Lanzarote has faced a water emergency: according to official data, in 2025 more than half of all desalinated water on the island was being lost. Authorities reported chronic leaks, breakdowns, and unfulfilled investment plans. As a result, the consortium exercised its right to emergency intervention under administrative law and is now taking control of the water management.
Context and implications for the region
The situation in Lanzarote has become one of the most acute water supply crises in the Canary Islands in recent years. Issues of infrastructure management and contractor accountability have repeatedly sparked public debate. For comparison, in Tenerife, the authorities recently decided on a large-scale renovation of an iconic building, which also raised questions about spending allocation and quality control—more details can be found in the article about the renovation of the iconic hall in Tenerife.
According to the president of the Lanzarote Cabildo, Oswaldo Betancort, terminating the contract with Canal Gestión is a key step toward stabilizing the island’s water supply. The consortium plans to restore the system’s reliability and fulfill all obligations to residents in the near future.
