The Cabildo de Tenerife has announced plans to increase its debt by €35 million to finance various infrastructure projects on the island. This decision comes despite the institution being in a financial regulatory framework due to previous spending rule violations.
The initiative, included in the eighth credit modification file of the year, totals €49 million and was approved at the recent plenary meeting, with support from CC, PP, and Vox, while PSOE abstained. The funding will allocate €14 million to internal credit modifications and €35 million for new borrowing.
Juan Carlos Pérez Frías, the island’s finance director, described the borrowing as a means to stimulate investment in areas such as roads, mobility, sports, industry, and the environment. He stated that the loan formalisation would occur by the end of the year, with spending planned for the next financial year to maintain compliance with economic regulations.
Significant projects include €12 million for road improvements and €5 million for renovations at the Heliodoro Rodríguez López Stadium, with funds earmarked for changing rooms and accessibility upgrades. An additional €4 million is set for a Sports Infrastructure Plan in collaboration with local councils, and €2 million is designated for industrial estates on the island.
However, PSOE’s spokesperson Aarón Afonso questioned the decision to take on debt now, recalling prior instances where the government dismissed similar proposals due to budgetary constraints. He argued that past claims linking fiscal rule breaches to spending limits rather than budget stability were flawed.
Pérez Frías defended the timing of the loan, emphasising that it would not count as current income, with expenses occurring next year.
Around €14 million in internal modifications includes a €3.8 million contribution to ACUAES, aimed at meeting commitments for hydraulic infrastructure projects, with 80% of these investments already in progress. During the current term, the Cabildo has executed €185 million, with an overall investment target of €233 million expected to be achieved.
