Court Approves OHL Deal, Paving Way for Tenerife Island Ring Completion

The Superior Court of Justice of the Canary Islands (TSJC) has ratified the agreement between the regional government and the UTE OHL to ensure compliance with the judgment that nullifies the contract awarded by the previous administration regarding the construction of the Tenerife island ring between El Tanque and Santiago del Teide.

This information has been communicated by the regional government in a statement, which outlines that the Contentious-Administrative Chamber of the TSJC has approved the agreement between the Canarian government and the UTE for a total of €13,777,496.74. The aim of this agreement was to guarantee the continuous progression of the works without interruptions, ensuring compliance with the established deadlines.

Consequently, the Ministry of Public Works, Housing and Mobility is committed to continuing this pivotal project for the island’s connectivity and mobility.

The construction of the Island Ring between El Tanque and Santiago del Teide was awarded to UTE OHL in June 2019, during the tenure of Pablo Rodríguez as Minister of Public Works, with an initial budget of €213.4 million, excluding IGIC. This decision was made following the conclusion of the Ministry’s technicians that OHL’s proposal was valid and without irregularities.

However, the UTE FCC later lodged an appeal, contending that OHL’s proposal did not adhere to the relevant labour and social regulations. Subsequently, the Administrative Contract Court mandated OHL’s exclusion from the process, leading the Ministry to allocate the contract to a different UTE in October 2023, under the leadership of the previous government’s former advisor.

In March of this year, the ruling from the First Section of the Administrative Litigation Chamber in Santa Cruz de Tenerife, dated March 14, 2024, was communicated, effectively annulling the decision made by the Administrative Court of Public Contracts for the Autonomous Community of the Canary Islands, alongside the previous Minister of Public Works and Transportation’s Order, which had recognised the viability of UTE OHL’s offer and awarded the project.

Presently, the project is making substantial progress, having surpassed 60% of the initial budget.

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