How Digital Transformation Can Support SMEs Recovering From Severe Flooding

By Pilar Pérez Casañ, Consorci de la Ribera

In a few hours on October 29th, the equivalent of a year’s worth of rain fell in some areas of Spain, causing large floods that devastated entire towns, leaving thousands of people trapped. In some places, more than 600 litres per square metre were recorded.

The rainfall, which was accompanied by strong winds and tornadoes, was caused by a meteorological phenomenon known as High-Level Isolated Depression (DANA) that has affected a large area of ​​the south and east of Spanish territory.

DANA in Valencia has already affected 130,000 homes. The government’s first estimation put the damage caused by DANA to infrastructure in Valencia at 2.6 billion euros. The economic impact of DANA on trade will be around 1,843 million euros. Camara Valencia estimates that the catastrophe has affected more than 5,200 retail establishments, of which 3,500 would have severe damage.

The most affected are those in the service sector, although the agri-food industries have recorded significant damage to citrus and rice. Around 30% of Valencian cooperatives, a sector with a “strong presence” in the territories most damaged by DANA, have been affected by the catastrophe.

Approximately 30 cooperatives have reported losses, impacting nearly 11,000 workers. The agricultural sector is particularly affected, with around 25,500 hectares of insured farmland damaged across 50,000 parcels, including crops like citrus, kaki, and vineyards. Infrastructure such as irrigation systems and rural roads also sustained severe damage. Although the real impact is still being evaluated, it is expected that there will be losses in future harvests and damage due to business closures.

The damage caused in terms of cultural heritage, such as barracks, century-old bridges, churches, works of art, etc., has not yet been able to be calculated.

How technology can play a crucial role in efficiently assessing damages and supporting recovery efforts.

Satellites of the European Copernicus programme have been key to analysing the floods in Valencia. The Sentinel satellites and its Emergency Management Service have generated detailed maps that identify the most affected areas, such as Hoya de Buñol, Ribera Alta and L’Horta Sud, helping to prioritise emergency actions and reconstruction.

Moreover, technology and innovative business practices can significantly improve resilience and recovery times for affected regions. Therefore, for immediate and short-term responses, Geographic Information Systems (GIS) and drones have helped to map the affected areas. Drones have helped assessing damages to infrastructure, crops, and urban areas without risking human safety. GIS has integrated this data to create visualizations that aid in resource allocation and response planning. Cloud-Based technologies have helped SMEs to back up critical systems and data and has allowed businesses to maintain customer and financial records, as well as allowing employees to work remotely.

 

Challenges for Recovery and Funding

Efforts for recovery are underway, with organisations evaluating damage and the Valencian Chamber of Commerce providing workspaces for affected businesses. Long-term reconstruction and financial aid will be pivotal in mitigating the disaster’s impact​.

The Council of Ministers approved new measures within the Immediate Response, Reconstruction and Relaunch Plan for the areas affected by DANA, with a main focus on the agricultural sector. The Ministry of Agriculture will allocate 444.5 million euros to support affected farmers and ranchers, benefiting 49,000 producers and the recovery of 70,000 damaged hectares. The measures include direct aid for a total of 200 million euros to compensate for production losses of more than 40%, as well as 180 million to restore farms and agricultural machinery. In addition, financing lines with 60 million euros and measures have been established to guarantee the supply of food to the affected areas. ICO credits for 1,000 million euros will also be activated for the agri-food sector.

European Union has approved that Member States can use funds from the European Agricultural Fund for Rural Development (EAFRD) to support farmers, foresters and companies affected by recent natural disasters, such as DANA in Spain, floods in central and eastern Europe, and fires in southern Europe. Countries will have the flexibility to provide emergency aid, financed 100% with unused funds from the 2014-2020 period, with a maximum of 42,000 euros per beneficiary. The measure seeks to facilitate recovery and reconstruction in the affected areas.

 

 

 


 

Sources:

https://www.datadista.com/playa-burbuja/el-mapa-con-las-130-000-viviendas-afectadas-por-las-inundaciones-en-valencia/

https://www.larazon.es/economia/primera-estimacion-gobierno-cifra-2600-millones-euros-danos-causados-dana_2024110467292766d8f8950001da5a26.html

https://www.levante-emv.com/economia/2024/11/12/dana-valencia-impacto-economico-comercio-111620058.html

 

Photo Credits:

Diario Plaza

https://www.publico.es/sociedad/trabajadores-atrapados-dana-valencia-empresas-no-contemplaron-quedasemos-casa.html

Las Provincias:

https://www.lasprovincias.es/comunitat/efectos-dana-comercio-afectados-4500-locales-mercados-20241102130442-nt.html

20 minutos:

https://www.20minutos.es/noticia/5649864/0/dana-valencia-asi-es-mapa-interactivo-google-maps-para-reportar-incidencias-desaparecidos/

https://www.youtube.com/watch?v=Q8PqQKWcZBY

El País:

https://elpais.com/clima-y-medio-ambiente/2024-11-21/un-informe-advierte-de-la-devastacion-del-parque-natural-de-la-albufera-por-la-dana-no-es-comparable-a-ningun-evento-anterior.html

 

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