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Home Diario de Avisos

Government Awards $13.7 Million to OHL to Ensure Island Ring Progress Continues

November 7, 2024
in Diario de Avisos
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Government Awards .7 Million to OHL to Ensure Island Ring Progress Continues
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The Minister for Public Works, Housing and Mobility of the Government of the Canary Islands, Pablo Rodríguez, alongside the general director of Road Infrastructure, Rosana Melián, revealed yesterday that the Executive has reached an agreement with the UTE OHL, amounting to €13,777 million, in compliance with the ruling from the Superior Court of Justice of the Canary Islands (TSJC). This ruling annulled the contract awarded by the previous administration for the Island Ring project between El Tanque and Santiago del Teide. Following this arrangement, the completion of the Erjos tunnel is scheduled for the first quarter of 2027.

The minister elaborated that “the recent TSJC ruling has validated the feasibility of the proposal submitted by OHL, which was initially awarded, thereby compelling the Ministry to adhere to the High Court’s decision and make choices that prioritise the public interest while ensuring “accountable, transparent, and efficient management of public finances.”

He emphasised that “it is decidedly in the public interest, and the rightful claim of the involved parties, to resolve a compensation agreement in favour of UTE OHL, addressing the damages incurred, in return for the relinquishment of the award. Additionally, the UTE FCC is committed to continuing the works without interruption. Furthermore, the minister stated that upon receiving the final ruling, the Ministry established two objectives: to ensure that the work continues uninterrupted due to its significance for the connectivity and mobility of the Island, and to prevent any delays in the process.
Melián articulated that if the contract with UTE FCC, which has been executing the work for five years, had been dissolved, it would have resulted in “a significantly greater economic burden” than the agreement settled on, and “this would have prolonged the process by at least three years.” She further noted that “the circumstances dictated by the works already completed by UTE FCC would differ from the initial offer presented by UTE OHL.”

Pablo Rodríguez provided a timeline of the scenario since the action was awarded in June 2019. Presently, the project is in a substantially advanced stage, having surpassed 60% of the initial budget, and following this agreement, it is anticipated that it will conclude in the first quarter of 2027.

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