Benalmádena seeks eight-million-euro loan to fund Puerto Marina refurbishment

The transaction is pending approval by the general meeting of shareholders. At a previous meeting, the councillor responsible for the port, José Luis Bergillos, explained why the town hall would not finance the project through a transfer to the public company: "The municipal auditor will not authorise it because he considers there to be a high risk of default" on the part of the public company.

The move comes after the council achieved a zero-debt position for the first time in 30 years in September 2025, when it repaid an old loan that was not due to mature until 2030. Early repayment saved 172,000 euros in interest on the outstanding principal of 1.25 million euros.

That loan was the only debt inherited by the current municipal administration. In 2015, the council owed 124 million euros, equivalent to 108.47 per cent of its annual budget at the time.

The borrowing plan accompanies an economic viability study of the administrative concession for Puerto Marina, which the Andalusian regional government granted to the municipal company. The study identifies investment as "a key factor in ensuring sustainability and profitability".

Under the plan, the company will carry out an ambitious investment programme worth 15,729,433.93 euros, excluding IVA. Of that total, 13.79 million euros relates to the 25-year extension to the concession that the regional government granted in May 2022.

To meet its funding needs, Puerto Deportivo de Benalmádena will combine its existing reserves and cash generated by commercial activities with the new long-term loan.

The company plans to take out an eight-million bank loan with a ten-year term and a French amortisation schedule, under which borrowers repay the loan through regular instalments. The effective annual interest rate, or APR, will be 3.40 per cent. The loan will begin with a two-month grace period, during which the company will pay only the interest accrued.

After that, the municipal company will pay a fixed annual instalment of 957,088.68 euros to cover both principal and interest. Over the full term, bank interest will cost 1,734,799.13 euros, bringing the total repayment to more than 9.73 million.

The council's 2027 budget already includes an allocation of 149,956 euros to cover the loan's financial costs. An economic study forecasts an annual return of 3.90 euros for every 100 euros invested and predicts that the company will maintain a healthy cash flow.

The concession study predicts that Puerto Deportivo will generate enough operating cash flow to meet its loan repayments without putting pressure on its liquidity. It forecasts average annual cash holdings of 4.75 million euros, equivalent to 104 million over the entire concession period, which runs until 2047.

The programme aims to renew infrastructure that has suffered significant wear and tear, while improving the quality and sustainability of the services the marina provides. The 15.7-million-euro programme covers several priority projects.

The centrepiece is a comprehensive refurbishment of the marina's facilities, with a budget of 8.89 million euros. The work will modernise roads and access routes, mooring points, utility networks and energy-efficient lighting. The company plans to carry out the work over the 2026, 2027 and 2028 financial years.

The company will also pay for the refurbishment of the nautical centre between this year and next. Work is already under way on the project, which initially carried a budget of 2.91 euros million plus IVA before the tender process reduced the price to 2.61 million euros.

These two projects, together with the redevelopment of the marina basin used for water sports, form part of the commitments the company made to the regional government in return for the concession extension. However, the water sports basin project, which has a budget of 2.56 million euros, will not go ahead until 2033 or 2034.

The investment programme also includes relocating the electrical transformer on Malapesquera beach, at a cost of 683,257 euros; reinforcing the foundations of a quay, costing 388,468 euros; and relocating another transformer substation, at a cost of 165,259 euros.

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