The European Investment Bank has signed a loan of 175 million euros with Acosol to modernise the water infrastructure of eleven municipalities in the Western Costa del Sol. The first tranche of 75 million is already available.
The European Investment Bank (EIB) and Acosol, the public company managing the integral water cycle in the Western Costa del Sol, have formalised a loan of 175 million euros aimed at modernising the water infrastructure of the region. The agreement, signed this Wednesday, includes an initial disbursement of 75 million euros.
The investment programme will benefit approximately 1 million permanent residents of the municipalities of Benahavís, Benalmádena, Casares, Estepona, Fuengirola, Istán, Manilva, Marbella, Mijas, Ojén, and Torremolinos. During peak season, the population served exceeds 1.4 million people, according to data from the Association of Municipalities of the Western Costa del Sol.
Key actions against water stress
The planned works include the replacement of over 20 kilometres of collectors in the sewage network that present losses and infiltration of seawater. More than 30 kilometres of drinking water pipes will also be renewed, and a new header tank will be built at the Río Verde Water Treatment Plant (ETAP).
In addition, wastewater treatment plants will be improved, and networks for recycled water will be installed to promote reuse. Energy efficiency measures will be implemented at the Marbella desalination plant (EDAM), including the generation of renewable energy for self-consumption.
The project aims to alleviate the chronic water stress suffered by the Costa del Sol, exacerbated by recurrent drought and increased tourist demand. According to the EIB, the investments will help reduce water losses, improve reuse, and strengthen resilience to climate change.
Record financing in Spain
This operation is part of the EIB Group Water Resilience Programme, which aims to mobilise 15 billion euros across Europe between 2025 and 2027. In Spain, EIB financing for water projects reached a record 570 million euros in 2025.
For the residents of the Western Costa del Sol, the works will mean a tangible improvement in supply and greater assurance of quality water, both for domestic use and for irrigation and tourism. The execution timelines will be specified as Acosol tenders the projects, although the first actions are expected to begin in the coming months.
In short, a boost of European funds that arrives at just the right moment for a region that is dependent on the tap. With more than 300 days of sunshine a year, water is worth its weight in gold.
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