The Labrit gateway in Pamplona has cost over 500%, from €390,000 to almost 2 million
- The Labrit walkway was built in 2010 with a budget of 390,000 euros. The final price was EUR 670 billion. But after seven years of error closure, it was rearranged at a cost of 1.6 million.
The City Council of Pamplona reports this week that it has prepared the entire repair dossier and claims the extra cost to the people and companies that did wrong the initial work. The project and the works directed by Boreas Nuevos Tecnología, S.L., Oscar Pérez, José Carlos Pereda, and Ignacio Olite. The construction works were executed by the Union Temporal de Empresas UTE formed by Arian Construcción y Gestión de Infrastructures, S.A. and TEUSA Restoration Techniques, S.A.
The truth is that Arian is in the competition of creditor companies and the opposition sees it difficult for the city council to recover that money. Therefore, if the money cannot be recovered in this claim, the opposition believes that the councillors of Navarre Sum who dealt with the operation in the previous municipal government should guarantee the reimbursement of the money. That is the request made yesterday by the opposition in the Urban Planning Committee of the city council.
A gateway political symbol
The catwalk was built at the time of Yolanda Barcina, but between 2016 and February 2023 it was closed. Joseba Asirón ran during the time of the municipal government, and based on the technical reports issued, the City Hall proposed the demolition and replacement of the walkway. But there was a municipal change and Navarra Suma took over the government. The new mayor, Enrique Maya, decided that the catwalk should be repaired and began to do so. The result is that the infrastructure, with an initial budget of EUR 390,000, has ultimately cost almost EUR 2 million, almost five times more, or the same, 500% more.
High infrastructure costs
Cost overruns are very frequent in the construction of large infrastructure, sometimes due to unforeseen works and in others due to the form of payment, for example when they are carried out through shadow tolls. In Navarre these last cases are the Highway of the Camino, the Highway of the Pyrenees and the Canal of Navarra.
According to data from the House of Auditors of Navarra, the cost of building the Highway del Camino was EUR 389.9 million. The Government of Navarra will end up paying the companies that built it in 2032, at a cost of 597 million. Similarly with the Pyrenees Highway: It cost 271.4 million and by 2039 the foral government will pay 553.8 million.
In the case of the Canal de Navarra, the construction of the First Section cost 169.9 million, and when paid for 2036 will be 314 million, and the Expansion of the First Phase cost 157.9 million and by 2044 will be paid 269.8 million. In the four cases mentioned above, overruns are foreseen for the return of 40%. It's clear that the system is convenient for governments because at the initial time of infrastructure construction, government doesn't have to put money in and that's what companies do, but at the end of the process, companies make a lot of money and government spending almost multiplies.
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