Sogama reports waste management savings and reduced municipal debt in Galicia

Sogama, the public waste management company in Galicia, reported significant financial shifts in its 2025 accounts. The company achieved savings of over 7.6 million euros for 210 Galician municipalities through a reduced fee program. To qualify for these savings, local governments had to reduce waste production by 1% or increase recycling and composting contributions by 3%. These lower revenues were offset by a 10 million euro contribution from the Xunta de Galicia.

Despite these savings, Sogama reported economic challenges due to central government policies, including the unilateral elimination of investment returns for its thermo-electric plant and ongoing landfill and incineration taxes, which cost the company approximately 27 million euros annually.

Additionally, municipal debt to Sogama fell by 30% last year to 9.2 million euros. The Xunta de Galicia has utilized the Local Cooperation Fund to settle debts from delinquent municipalities. On the investment front, Sogama has begun constructing a 16 million euro textile waste recovery plant in Cerceda, funded by Next Generation funds. The company's total investments since 2015 have exceeded 118 million euros.