The Arrecife City Council has confirmed it is returning a €2.7 million grant to the Cabildo of Lanzarote for urban improvement projects. The council attributes this to ongoing delays in project submissions by the contractor, which hindered the bidding process within the scheduled timeframe for the grant.
The council provided documentation, including a decree dated June 11, 2025, that terminated the contractor’s agreement due to non-compliance, in accordance with local contract law. This contract was for the drafting of project plans for the renovation of streets including La Inés, León y Castillo, and Ramón Franco and Figueroa. The projects date back to the previous administration.
Arrecife authorities stressed that public contract law does not allow for the extension of grant justification deadlines when there are repeated failures by contractors. As a result, the only recourse was to refund the grant to avoid penalties and additional costs from interest delays.
Part of the funds was earmarked for projects to renew La Inés Street and install public lighting in the La Concha area, among other tasks, with an execution timeline set between December 1, 2024, and November 30, 2025.
The Cabildo previously indicated the city’s failure to justify a €2,694,325 grant meant for improvements in accessibility across Lanzarote, due to missing documentation by the established deadlines.
City Mayor Yonathan de León has since expedited the completion of the projects using a new drafting team. This will allow the council to tender multiple works this autumn and winter, funded through municipal budgets that are notably robust this year.
The electrification and public lighting projects for La Concha are underway and construction is expected to be completed shortly through municipal financing. The council noted that public projects in the Canary Islands face significant delays due to logistical challenges faced by contractors and suppliers, labour shortages, and rising material costs, further exacerbated by inflation.
