Tag: bid

Green Light Given to ‘La Ciudad de la Justicia’: Madrid Needs €771m For Its ‘Megaproject’

17 February 2015 – El Confidencial

The Official Bulletin of the Community of Madrid reflects the economic conditions that the Government requires of the concession companies that want to bid to construct the future judicial offices in Valdebebas.

On Monday, the Official Bulletin of the Community of Madrid reflected the economic conditions that the Government of Ignacio González is imposing on the companies that want to construct the new judicial offices in Valdebebas. Two months before the regional elections, the Community of Madrid calls for a €771.7 million contract for a “megaproject” that will not see the light until 2019. The initial bidding budget for the works to be built in the North of Madrid will exceed €1,700 million, according to estimates reflected in the public document. The companies that are interested in “bidding” for the project have until 1 April to submit their bids to the Presidential Council, led by Salvador Victoria.

The total estimated cost of the project is divided into two parts. The Community of Madrid has already invested €288 million in the site: on the land, the tunnels that have now been constructed and the Institute of Legal Medicine, which has already been built. Therefore, the chosen companies would only have to contribute the remaining €483 million to take the total to €771 million. Construction of this project is expected to begin in July next year and the site will be operational from summer 2019.

The Community of Madrid will grant a 30-year administrative concession to the winning firm, to whom it will pay a fee of around €45 million, which is the amount it currently pays for the rental of the 28 judicial offices around Madrid and their associated services. The concession will begin from the day that the building work contracts are awarded, which will be in July, and not from its completion date (scheduled for four years later), as is usually the case, which means that the Community will have a four-year grace period and the fee will be paid on a linear basis over 26 years.

(….)

New jobs

With an area of 200,000 square metres, the Ciudad de la Justicia (City of Justice) will be located in the Parque de Valdebebas and will house the 356 courts of the Judicial District of Madrid, 554 judges and magistrates, 202 prosecutors, 362 court clerks, more than 5,000 people in the service of the Administration of Justice, more than 42,000 lawyers and 1,719 barristers, in addition to the citizens. According to the Community of Madrid’s calculations, the building work at the Ciudad de la Justicia will result in the creation of 2,200 jobs and a minimal improvement in Madrid’s GDP.

Original story: El Confidencial (by Ana I. Gracia)

Translation: Carmel Drake

Adif Seeks Tenant For Historical Building In Príncipe Pío

9 February 2015 – Expansión

Madrid / The railway management company is looking for a tenant to manage the property, which measures more than 6,000 square metres, for 50 years

The railway management company, Adif, is continuing with the optimisation process of its real estate assets and has decided to put one of its most emblematic buildings in Madrid on the market. The building, located next to the Estación del Norte – known locally as Príncipe Pío – has been empty for years. Adif has decided to confer the management of the building and surrounding area for a term of 50 years. During this period, the new tenant shall pay a fixed annual rent of no less than €150,000 per year, whereby the public company will receive at least €7.5 million from the arrangement.

Historical building

The railway management company will grant both the main building, with has a surface area of more than 6,530 square metres, as well as the free spaces around the building, which have a surface area of approximately 3,429 square metres. The building has “great architectural value and its origins date back to the beginning of the 20th century”, with a large central hall and two towers, according to the terms of reference prepared by Adif.

Nevertheless, the main building is in a “poor condition” and so the tenant will have to undertake a comprehensive renovation project, which will be a key condition of the contract. The cost of the restoration and renovation work may not amount to less than €7 million.

Interested parties have until 2 March to submit their bids and the period for the submission of financial bids will open on 13 March.

This is the second time that Adif has put the Príncipe Pío building on the market. In December 2013, it launched a similar process to award the operation of the property. However, the two bids it received did not meet the conditions established in the terms of reference. To avoid a repetition of this problem, Adif has simplified the conditions, which should facilitate their agreement. The property, which is listed as a Property of Cultural Interest, was renovated in 1999 to house a recreational, cultural and retail centre. Last year, the Community of Madrid extended its permitted use to include offices.

Original story: Expansión (by Rocío Ruiz))

Translation: Carmel Drake