Water infrastructure: all the solutions that make the “blue gold” shine

In the summer of 2022, amidst the low waters of the Elbe River at the border between the Czech Republic and Germany, a “hunger stone” reappeared, engraved with the inscription, “If you see me, then weep.” These “hunger stones” are hydrological markers placed on the riverbed. When they surface, it means the water level has dropped below critical thresholds, signaling droughts that devastate the regions affected by the river’s course—harming businesses, agriculture, and daily life. Similarly, the effects are severe during major floods, such as those that struck Germany in 2021 or Emilia-Romagna in Italy in 2023.

Water and its management have become a global issue, essential to the survival and well-being of billions of people. This is why, in March 2023, the United Nations organized its second-ever Water Conference in New York, more than 40 years after the first one in 1977, which was held in response to the water crises of the 1970s. According to data from the World Health Organization, the situation today is far graver than it was then: 785 million people lack access to potable water, at least 2 billion people use water contaminated with feces, and—despite two-thirds of the planet being covered by water—freshwater accounts for only 2.5% of the total water volume on Earth.

The preciousness of water, as valuable as gold, became evident to everyone at the end of 2020 when—for the first time in history—it became possible to trade Nasdaq Veles California Water Index futures on the Nasdaq stock exchange. These futures allow speculative trading on the value of Californian water. Essentially, during droughts, the index rises, and market prices increase; during periods of water abundance, the opposite occurs.

The understanding that water is a finite resource mandates careful management, preventing its waste and ensuring its optimal use for essential needs, energy production, and other purposes. This includes harnessing its potential, such as collecting stormwater with stormwater systems and treating seawater in desalination plants to make it potable—a crucial task for this and future generations.

Water crises and the importance of water infrastructure to mitigate them are daily realities for billions and play a critical role in economic development.

In 2015, the U.S.-based alcoholic beverage giant Constellation Brands announced a deal with the Governor of Baja California, a state in Mexico, to build a large brewery in Mexicali, near the California (U.S.) border. For the company, it was a strategic location that allowed access to the aquifer resources of Mexicali Valley and logistical proximity to the U.S., its primary market.

However, the announcement triggered fierce protests from Mexicali residents, already struggling with a water crisis caused by the significant reduction in the Colorado River’s flow. The Colorado River, which traverses seven U.S. states, also supplies water to Baja California but has faced a severe water crisis in recent years.

In this case, infrastructure played a critical role in avoiding disaster. Major dams, such as the Hoover and Glen Canyon Dams, and the Lake Mead water system built by the Webuild Group, provided relief. With Lake Mead’s (the largest artificial lake in the U.S.) water levels dropping, the Intake 3 system built by Webuild captures freshwater at greater depths, diverting it through an advanced stormwater infrastructure system of pipes to Las Vegas.

From dams and water systems to drainage networks, stormwater systems, wastewater treatment facilities, and desalination plants that convert seawater into freshwater, the Webuild Group has made water a cornerstone of its business and sustainability goals. Over the years, it has risen to the top of the global sector.

This leadership was reaffirmed in 2024 by ENR’s (Engineering News-Record) prestigious Top 250 International Contractors ranking, which awarded Webuild first place in the hydro sector. This recognition stems from its involvement in iconic projects, including Ethiopia’s major dams (such as the Grand Ethiopian Renaissance Dam, which will be Africa’s largest) and Australia’s Snowy 2.0 hydroelectric plant, the most significant in the country’s history.

Additionally, Webuild’s subsidiary, Fisia Italimpianti, is a global leader in desalination technology, serving over 20 million people, primarily in the Middle East. As of June 30, 2024, the water infrastructure sector accounted for 22% of the Group’s global revenues, highlighting its strategic importance for both the company’s future and the global communities benefiting from its projects.