Spanish Construction And Engineering Sectors Propose A €100 Bn Investment Plan

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Intermoney | SEOPAN, the employers’ association for the large Spanish construction companies, together with the engineering companies’ Tecniberia, have proposed a 100.428 billion euros infrastructure investment plan to the Government. This would be capable of generating some 1.4 million jobs until 2026, according to the newspaper Expansión. The plan would include 2,277 actions distributed in 10 macro-projects and 32 investment lines. The contributions from the State would amount to 12.74 billion euros, or 18% of the total, while the rest would come from the private sector. According to the two employers’ associations, the execution of these projects would mean a fiscal return of over 43 billion euros.

It is not surprising that SEOPAN is proposing an increase in investment. In 2020 the tenders by all Spanish administrations in public works fell by 31% to 12.7 billion euros. However, there is hope that part of the 34.6 billion euros of European funds in 2021 to ease the impact of the pandemic will be earmarked for this end. The following graph shows the evolution in the volume of tenders since 2001 in million euros. This shows that we are currently at the level of 2012, with figures even lower than those of 2001. That said, the listed construction companies have a relatively low volume of activity in Spain, with the sole exception of FCC, where private contracts have a special importance anyway.

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