Some railway projects have had to be put on hold. sur
Almost 200 projects, worth 140.7 million euros, in limbo in Andalucía due to rising costs

Almost 200 projects, worth 140.7 million euros, in limbo in Andalucía due to rising costs

A recent study has shown that construction companies are reluctant to bid for contracts because it would not be worth their while

José Luis Piedra


Tuesday, 15 November 2022, 17:18


Rising inflation and the incessant increase in the cost of energy, raw materials and supplies have paralysed around 200 projects worth 140.7 million euros in Andalucía.

This alarming halt in public investment has left some major projects hanging, including medical facilities, railways, roads and housing, according to a study by the Fadeco organisation which represents major construction companies.

The report details projects where the contracts have been put to tender but with no response; this is because rising costs make it impossible for the companies to take them on.

In many cases this is due to the fact that the administrations are quoting a price which is too low, although sometimes it is they who postpone a project because the cost is no longer within the budget they have set for it.

The projects affected are from all administrations, from the government in Madrid and the Junta de Andalucía to councils and provincial authorities.

Fears of 100,000 job losses

Fadeco estimates that costs of supplies have risen by 20% or in the case of energy 40%, resulting in losses of over 600 million euros for the companies. There are fears within the construction sector that unless the administrations revise their prices many companies will be forced to close, with the loss of around 100,000 jobs in Andalucía.

However, at present there is little sign of the government and Junta de Andalucía reaching agreement over price changes.

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