Alicante Construction Companies Protest Against Government's 'Abuse' in Public Works Contracts

The Federation of Public and Auxiliary Works of Alicante (FOPA) has expressed strong opposition to the government of Pedro Sánchez, accusing it of 'abusing' its own resources, particularly the company Tragsa, in the awarding of public works contracts that are deemed 'inappropriate for its function'.

In this regard, FOPA President Javier Gisbert denounces the 'unfair competition' from the government towards the private sector, highlighting the 'unjustified' increase in the awarding of certain public works projects to state-owned companies.

FOPA's data indicates a 95% growth in recent years in contracting work to state-owned resources like Tragsa. This policy is considered 'abusive' regarding pricing, qualified personnel, or subcontracting conditions.

With these 'unfair competition' practices towards private construction companies, Gisbert accuses Sánchez's government of turning Tragsa 'into a Trojan horse against the sector and the employment we generate'.

Similarly, he recalls that the public company is intended for rural development, environmental conservation, and emergency response, which is why for the past five years, the state has assigned it 'technical responsibilities for which (Tragsa) is neither equipped nor prepared'.

Gisbert also claims that Tragsa 'takes over' contracts for abandoned tenders that could not be addressed because the offer prices were not market-aligned, and their awarding 'meant working at a loss'.

In his view, FOPA's president warns that 'there is a veiled intention to turn private sector companies into subcontractors of public companies in public works projects', a situation that disrupts the sector's dynamics, creating dependency relationships with 'harmful prices and conditions'.

FOPA President Javier Gisbert demands an end to the 'dumping in public works carried out by the Spanish government against the country's companies'. Therefore, he calls for the central government to 'respect the rules of the game' and ensure that public-private collaboration 'is not a subjugation that endangers companies and jobs in the sector'.

The employers' association fears that awarding abandoned tenders to Tragsa will become a 'widespread practice to suffocate the sector', leaving behind a 'much-needed' public-private collaboration.

At the same time, Gisbert denounces that with this public works policy, the state 'is driving down prices, a serious mistake that endangers companies and their jobs and, in the medium term, jeopardizes the existence of companies with the technical capacity to continue building innovative, efficient, and useful public works for citizens'.

The Spanish business sector dedicated to construction, particularly in the province of Alicante, has a 'high technical and professional reputation' worldwide, which could be 'endangered if the state works to break market rules'.