Tenerife South Airport Renovation Stalls After Tender Fails to Attract Bidders

The modernization of Tenerife South Airport—a key project in Aena’s five-year investment plan—has hit a major roadblock after its first tender failed to attract any bidders. Official procurement records show that no technical or financial proposals were submitted for the 464.1 million euro renovation project by the September 15 deadline.

This setback reflects broader challenges in the Spanish construction industry, where fluctuating material costs and complex project requirements are making it difficult for firms to take on large-scale work. At Tenerife South, the situation is further complicated by the need to keep the airport fully operational during construction. Aena acknowledges that the market views this logistical challenge as riskier than originally anticipated.

Despite a total budget of 496.6 million euros (including taxes) and an eight-year timeline, the lack of interest means Aena must now rethink its approach. Aena Chairman Maurici Lucena downplayed the issue, noting that such hurdles are common in large infrastructure projects and that the company’s public nature ensures these processes remain transparent.

The renovation is a central part of the DORA III regulatory document for 2027–2031, recently approved by the Council of Ministers. This broader plan includes 10 billion euros for national airport improvements, with 1.8 billion specifically set aside for the Canary Islands.

Aena’s management team, led by Javier Marín, is already working to revise the contract terms. The goal is to make the project more attractive and viable to ensure the investment moves forward. While Aena has the flexibility to reorganize its project portfolio, the company maintains that the Tenerife South renovation remains a strategic priority and expects to launch a new call for tenders soon.