Valencian Builders Request €10 Bn For Vague Works

15/07/2014 – Inmodiario

The Valencian constructors asked for €10 billion to fill the €6.5 billion gap in investment in public works, accumulated by the region over the past fourteen years. No matter for what. The real importance for them is to invest in the Valencian Community´s development. We already know where this strategy leads to.

Justification is no novelty. Lack of investment in the region provoked loss of 180.000 jobs, while at least 130.000 positions could have been saved it the investment had remained on the national level.

The builders complain that the Valencian Community saw only 3.3% of the entire amount spent by the State from January to May, whereas Andalusia accounted for 18%, Extremadura for 7.9% and Galicia for 7.8%.

Moreover, the Administrative Works Contractors Federation (Fecoval by its acronym in Spanish) and the Chamber of Contractors accuse the local authorities of hiding a €152 million debt with 32 companies. Oficially, the regional Government has accounted only €80 million, possible to refinance from the Fondo de Liquidez Autonomica (FLA, a creditline for the Spanish regions from the central Government).

According to estimations, the Valencian Community has been given 2012-2013 plan of payments to providers totalling over €7.5 billion and another €12.1 billion from the FLA but the debt maintained with the firms has not been paid-off as almost 60% of the Community´s indebtness (total of €34 billion) is owed to the State.

Given all that, the builders reckon the adjustment should not be equal to halt in investment and their sector should be considered the common good, otherwise the recession will never end.


Original article: Inmodiario (by Juan C. Martinez)

Translation: AURA REE