34 |2020 Sustainability Report |Aqualia’s horizon USA In 2020 Aqualia saw its commercial activity in the United Last June, Aqualia took control of the AQUOS (Realito) States strengthened. concessionary company by acquiring an additional holding, bringing its total shareholding to 51%, Water scarcity, the obsolescence of hydraulic a concession in which Aqualia had previously held infrastructures and low penetration of private operators in a minority shareholding. the sector are the source of the main growth opportunities for Aqualia in certain states. However, the COVID-19 Colombia crisis, the general elections and the turbulent political In 2020 construction of the El Salitre WWTP in Bogotá transition led to a general slowdown in the economy continued, with a minimal impact by the pandemic on the and, in particular, for water and sanitation projects. execution as a result of the strict protocols implemented. This collection of measures placed Aqualia at the forefront with regard to sanitary safety in hydraulic infrastructure LATIN AMERICA works, and has been recognised by public bodies and the The lack of water infrastructures and the search for multilateral banking sector. efficiency in the existing ones are two factors that strengthen Aqualia's growth possibilities in Latin America. In March 2020, the acquisition of 12 municipal concessions in the Córdoba Department was completed, Mexico6 which together with the concession awarded in Villa del In 2020 Aqualia consolidated its presence in Mexico, Rosario in the Santander Department, which started in becoming a leading company in the sector with a highly May, consolidated Aqualia's presence in the country as diversified asset portfolio. an integral management operator. Peru The State is in the process of evaluating the efficiency of its public supply services in order to assign to private initiatives in those areas with the worst management indicators. In 2020, the company also presented a private initiative for desalination in the municipality of Ilo, which was declared significant and has begun to be developed. The experience acquired in the BOT (Build, Operate, Aqualia is currently studying different projects both as Transfer) contracts for Aqueduct II in Querétaro and a provider of services for Public Companies as well as Realito in San Luis de Potosí enabled us to put forward for financing, designing, building and operating large similar projects to institutional clients, where the hydraulic infrastructures. technical and financial skills involved give Aqualia an advantageous position in the country. Panama Aqualia withdrew from the assistance and advisory The Guaymas desalination plant,which was expected contract for the operational and commercial to be completed in 2020, willcome into operation management of IDAAN (Panama) due to the long during 2021. period of time elapsed from the award to approval by the comptroller's office. In this same country, a contract In June, Aqualia acquired 100% of the shares of for the engineering, construction and 10-year operation Ecosistema Morelos (EMSA), the purpose of which is of the Arraiján WWTP was also terminated early due to the concession for the Cuernavaca WWTP. With thisnon-payment by the client. transaction, Aqualia completed a cycle of activities in the country by adding wastewater treatment in Cuernava, desalination in Guaymas and drinking water supply in Querétaro and San Luis de Potosí. 6 The environmental data for activities in this country are not consolidated in this report.