Details emerge on Spain’s €17bn infra stimulus

Spain’s €17bn public-private partnership stimulus plan has survived cuts to infrastructure announced yesterday by transport minister Jose Blanco. A list of 12 road and high-speed rail projects that will now be re-tendered to the private sector was also revealed.

Transport minister Jose Blanco’s €17 billion infrastructure stimulus public-private partnership (PPP) plan emerged unscathed yesterday after the minister went to Parliament to give details on spending cuts and delays to almost €10 billion worth of Spain’s public works programme.

In Parliament, Blanco took the chance to reiterate that the first projects that form part of the PPP stimulus will start being tendered during the summer. In total, Blanco announced changes to 20 percent of the more than 1,110 public works contracts currently in procurement with the majority being delayed or restructured.

About 32 contracts, or 2.7 percent of all ongoing contracts, were cancelled but 12 of those will now be re-tendered as PPPs. These 12 projects – including eight road deals and five stretches of high-speed rail – provide the first concrete details on which projects will be tendered as part of the government’s €17 billion PPP plan.

They include two stretches of the A8 road in Cantabria, in the north of Spain; three stretches of high-speed rail (HSR) between Palencia and Santander, also in the north; two stretches of Catalonia’s A14 and A27 roads; a portion of the A33 road, in Valencia; two stretches of HSR connecting Valencia and Castellon; and two portions of Galicia’s A56 road. No details on their cost were given.

Blanco had previously said that 30 percent of the stimulus plan would include refurbishment works to several of the country’s roads with the remaining 70 percent comprising rail projects including freight rail, HSR, and suburban rail projects.

To find out more about Spain and Portugal’s PPP plans, please check our report on Iberian infrastructure in the September 2010 issue of Infrastructure Investor.