Agreement reached to end Canal Gestión contract as Lanzarote’s water management company

Lanzarote’s Water Consortium yesterday voted to end the island’s agreement with Canal Gestión due to breach of contract.

The seven island mayors voted unanimously to support the Cabildo’s motion and end the agreement that began in 2013 with the privatisation of the island’s water utility. The Consortium will also seek unspecified damages for failure to make agreed investments and failure to reduce water losses to 30%. Recently it was revealed that water losses in 2024 were 56.2 %.

Canal Gestión has expressed “utter disappointment and disagreement” with the decision, and is likely to respond with a countersuit.

Cabildo President Oswaldo Betancort has stated that “the water supply is guaranteed”.