The Canary Islands government has yet to award any public housing contracts this year, despite claims from Public Works and Housing Minister Pablo Rodríguez that there have been no failed tenders in his department. Responding to a question from socialist MP Lucía Fuentes, Rodríguez highlighted that his department had not recorded any such cases, crediting effective planning and project management for this outcome.
However, Rodríguez’s assertion is misleading. Agencies under his jurisdiction, including the Canary Islands Housing Institute and Ports of the Canary Islands, have experienced several unsuccessful tender attempts. Specifically, the Housing Institute recorded four deserted tenders, including a public competition in November 2023 for IT systems support, which received no bids. Other cancelled projects include 11 protected housing units in Granadilla de Abona and energy rehabilitation works for housing in Santa Cruz de Tenerife.
This Friday, the ministry announced a new tender for 24 protected housing units in Guía de Isora, with a budget of €4.43 million, slightly higher than a previous budget of €4.14 million for a similar project that did not attract any bidders in February.
Rodríguez’s department stated that construction costs were not the sole reason for the lack of bids, attributing it instead to low business participation due to budget constraints and other local challenges. When tenders fail, they are usually reissued with modifications to make them more appealing to potential contractors.
The Ports of the Canary Islands reported eight failed tenders, covering various projects, including port safety improvements and maintenance services.
In total, the agencies linked to Rodríguez’s department accounted for 12 unsuccessful tenders. Yet, they are not the worst offenders in the government, led by the public company Gesplan with 77 failures, followed by the Hospital Nuestra Señora de la Candelaria with 61 unsuccessful contracts. The upward trend in failed tenders is confirmed nationwide, with over 20,000 such cases recorded in 2023, up from 18,000 in 2022, largely due to inflation and workforce shortages affecting the construction sector.
