Major Infrastructure Projects Stall in Northern Tenerife Amid Lack of Bids

Two major infrastructure projects in northern Tenerife have stalled, highlighting the growing struggle local authorities face in attracting private investment during uncertain economic times. Public procurement records show that both the renovation of the Tacoronte-El Sauzal health center and the construction of an underground parking lot at the Plaza de la Constitución in Puerto de la Cruz failed to attract a single bid.

The situation at the health center is particularly urgent. The €6.8 million project, intended to take 26 months, was meant to restart work that began in 2019 but was repeatedly halted by the pandemic and technical issues. The facility, which has served over 32,000 people for more than 30 years, is in desperate need of an upgrade.

In Puerto de la Cruz, the challenge is even larger. The €16 million plan aimed to ease the town’s parking shortage by creating 333 spaces. The project relied on a concession model, offering residents 30% of the spaces on 40-year leases for €15,000 each.

Pedro Antonio Campos, the local Councilor for Finance, blamed the failure on volatile construction costs, which have been worsened by global instability. To move forward, the City Council is now looking to negotiate directly with potential contractors, hoping to adjust the project’s terms within the limits of public contract law.

However, the opposition PSOE party has criticized the council’s management. Spokesperson Marco González called the failure "predictable," arguing that the project was never financially viable without backing from the Cabildo de Tenerife or the regional government. He suggested that the lack of investor interest reflects a decline in the city's appeal, noting that neighboring towns have successfully completed similar projects through better cooperation between government bodies.

The parking project, which has been in the works since 2011, is now at a standstill. While local officials insist that investors are still interested, the lack of formal bids has forced the council to rethink a strategy that has yet to deliver results after more than a decade of planning.