Southern train project funds are coming from Madrid after all

Update 9 July 2012: It might be late, but it’s coming, apparently – at least the project is. Madrid has finally come up with the 8 million Euros for the technical project to be drawn up, with 3 million being paid this year, and the remaining 5 in 2013. The confirmation was given by Tenerife Cabildo councillor for Economía y Competitividad, Carlos Alonso, who clarified that the agreement will now be processed by the Public Works Department. He added that the delay in confirming the monies will, in effect, only add six months on to the original estimates, and that the critical point was the environmental impact statement which is still awaited from the Canarian Government’s Environment Dept.

These early stage projects are, essentially in three parts: the “land plan”, which is almost complete; the environmental impact statement, which is expected shortly; and then the drawing up of the projects, whose financing now seems secure. In a statement of what might seem to some to be the bleeding obvious, however, Sr Alonso said that after this was all completed, the really important thing was how to finance the actual works themselves. Given that, as I posted HERE, the cost for the whole thing is estimated at 2 billion Euros, 70% of which was to be funded by Madrid, and given the national finances right now, one really does wonder if this isn’t all just pie in the sky – and that this is 8 million Euros down the drain.

Original post 22 November 2011: The much-vaunted southern train project has been suspended. Delays in the funding agreement process with Madrid has left the Tenerife Cabildo without the funds to complete the contracts awarded earlier this year. The contracts, for works costing 8 million Euros, will now be cancelled.

The announcement was made by Carlos Alonso, Cabildo Councillor for Economía, Competitividad y Turismo. Sr Alonso said that the plans included several processes that were well advanced and that the project was not being abandoned. It is, however, on the back burner for the foreseeable future.

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