financiacion-canal-armuna

Unicaja Banco finances the construction of the first phase of La Armuña Canal

This infrastructure project will turn into irrigated land some 6,600 hectares of the Salamanca county of La Armuña.

25 JUN 2019

4 Min reading

Currently, around 840 owners are involved in this project, which could be working in three years.

 

Unicaja Banco considers that financing the La Armuña Canal will be an unquestionable boost to the economic development of an important Salamanca county.

 

Unicaja Banco and the Irrigation Association of La Armuña have entered into an agreement to finance the work for the construction of the first phase of La Armuña Canal. This project, long demanded by the farmers of the county, receives a contribution by the Regional Government of Castilla y León (Junta de Castilla y León), and will involve a total investment of nearly 43 million euros. The works, pending tender, could start in the next months and end in three years.

 

The President of the Irrigation Association of La Armuña, Teodoro López, considers that this project, highly demanded by the county since the 2000s and boosted by its Board shall tie people to the region, incorporate new young people to farming, increase investments and improve cultivation alternatives.

 

For Teodoro López, “irrigation agriculture is a key sector in the regional economy and its future depends on the search for efficient and economic solutions to solve the problems of the sector. With the modern remote control that we want to install”, he proceeded, “we will manage irrigation with the highest efficiency”.

 

In addition to the transformation of this area into irrigation land, the Irrigation Association of La Armuña is considering to set a solar farm for self-consumption of part of the energy that farmers need. “We will have a modern irrigation system, pioneering in Salamanca and in Castilla y León, and that will have a very positive influence on the development of this area. We will save in nitrogenous fertilizers and water consumption will decrease by 30%. This will reduce pollution and will contribute to fight the climate change”.

 

Unicaja Banco’s Regional Manager, Manuel Rubio, has expressed his satisfaction for contributing to finance this infrastructure, which “will be an unquestionable boost to the economic development of an important part of the province and of a remarkable number of farmers”.

 

With this action, a total of 6,600 hectares of this county will become irrigation land, distributed as follows: 2,338 ha in Villaflores; 2,264 ha in Cantalpino; 1,616 ha in Campo de Peñaranda, 1,808 in Poveda de las Cintas and 150 in Zorita de la Frontera.

 

This project involves 840 owners, of which 220 are professional farmers. However, it is expected that some 500 owners will be linked in the next months, due to the sale of land and to the elimination of duplications, as some plots are registered on behalf of several owners.

 

285 km in pipelines

 

This section of La Armuña Canal will have a pipeline network of 285 km, and it will involve several advantages, such as reparcelling and increased irrigation mechanization, resulting in a remarkable decrease in costs.

 

Yield will also be improved, as most of the hectares included in this project are currently dry-farming areas. The current irrigation land will benefit from these improvements, as water extraction by drilling can have a cost of up to 1,800 per ha, and this will reduce by more than 50% when the project is completed.

 

The estimated savings for farms will involve a 25 to 30% reduction in the cost of water for the current irrigation lands and savings of 20% in land fertilization.

 

Taking into account the cost to be assumed by the owners for land equipment, the financing needs stand at 3,500 euros per hectare, with a total amount of 23 million euros.

 

Unicaja Banco finances investment for land equipment, offering loans with a personal guarantee for a term of up to 8 years. It also offer specific conditions on a case-by-case basis, adapting the financing needs of customers and repayment terms, under agreements such as the one entered into with Iberaval.

  • Responsabilidad Social Corporativa

RELATED NEWS

Edufinet Project and CIFAL Málaga join the Global Money Week with the organization of a webinar on sustainable finance

Edufinet Project and CIFAL Málaga join the Global Money Week with the organization of a webinar on sustainable finance

Unicaja’s Edufinet Project and CIFAL Málaga jointly organize, on the occasion of the Global Money Week, a webinar on the importance of sustainable finance. 25 MAR. 2021
Read news
Unicaja’s Edufinet Project takes part in the Global Money Week and launches a microsite on new technologies applied to finance

Unicaja’s Edufinet Project takes part in the Global Money Week and launches a microsite on new technologies applied to finance

The Edufinet Project on financial education, promoted by Unicaja Banco and Fundación Unicaja, launches on its website, on the occasion of the Global Money Week, a new microsite on new technologies applied to finance 24 MAR. 2021
Read news
Unicaja’s Edufinet Project organizes an online workshop on cryptocurrencies for students of the University of Jaen

Unicaja’s Edufinet Project organizes an online workshop on cryptocurrencies for students of the University of Jaen

In collaboration with the University of Jaen (UJA), has offered, for the first time, an online workshop for university students, with the aim of explaining the main keys of cryptocurrencies, as well as their potential relationship with economic phenomena such as hyperinflation 05 MAR. 2021
Read news

For Unicaja Banco S.A., the holder of the web page, it is important to adapt to your tastes and preferences, for which we use own and third-party cookies, that gather connection data that may be linked to your registration user name, the purpose of which is to measure traffic and user interaction with the web page, to help to improve operation of the web content, as well as the services and products offered, preparing behaviour profiles, while always protecting your privacy. You may transparently choose the configuration that suits you best, without that causing any change in your usual operations.