The redevelopment of Estadio Gran Canaria has hit a major setback before construction has even begun. No company submitted a bid for the €174.7 million tender, with contractors pointing to an underestimated budget, heavy delay penalties and major logistical risks linked to carrying out the project in the Canary Islands.

Original plan

On February 7, 2024, the city of Las Palmas presented its Estadio Gran Canaria renovation project alongside L35, a very exciting proposal for the Canarian people as it was the same company responsible for designing the Bernabéu expansion. The stadium’s capacity was planned to increase from the current 32,400 seats to 41,854, and the Naciente Stand would be moved closer to the pitch.

The beginning of the works, which were expected to last around two years, was initially planned for 2025. However, as is common with this type of project, the construction was delayed.

Nobody submitted a bid: Very high risk and “excessive penalty”

The city’s intention was now for construction to begin after the summer in order to ensure that FIFA’s deadlines (set for mid-2029) would be met. The tender launched by the Island Sports Institute of the Cabildo of Gran Canaria included a budget of €174.7 million, a construction period of 36 months, and allowed companies to submit their bids from June 3 until the tender deadline on Tuesday, July 7.

However, to everyone’s surprise, no company submitted a bid. According to María Salud Gil, president of the Association of Construction and Development Companies of the Province of Las Palmas (AECP), this was not due to a lack of interest: The construction companies tried until the very last moment, but the financial risk was considered very high.

According to the AECP, there were several obstacles. The budget was around 40% below the real market price, and the penalty for delays, set at 50% of the project’s value, was considered excessive.

© L35 Arquitectos | The redevelopment of Estadio Gran Canaria has stalled before construction even began. No company submitted a bid for the €174.7 million tender, with contractors pointing to an underpriced budget, heavy penalties and major logistical risks.

Companies started sending SOS messages because the project could not be carried out. We asked for the work to be properly valued and for its complexity to be understood. For example, the metal structures have to be imported, and that involves very specific management difficulties, explained Salud Gil.

She also pointed out that the simultaneous use of the stadium by UD Las Palmas was another complication, as it increases costs and requires triple work shifts. However, this could potentially be solved, as after the failed tender process, the club has opened the possibility of playing in another stadium in order to speed up the construction.

Salud Gil concluded by stating that the Cabildo of Gran Canaria will have to step up and added: It is a very emblematic project for a very important event for Gran Canaria. We cannot afford any more delays.

Another reason being discussed is the increase in costs caused by the island’s geographical situation and distance from mainland Spain, as well as the rise in construction material prices.

The president of the island council reassures the public

Antonio Morales, president of the Island Council, addressed the media and stated, We are going to explore every avenue currently available. The opposition—and everyone else–should not worry. Stay calm. He also announced that next Monday, in a calm and composed manner, all parties involved will meet to analyze every possible way to bring the project to completion.

© L35 Arquitectos | Gran Canaria is running out of time to bring its stadium up to FIFA requirements. After the failed tender, island authorities must either revise the project conditions or seek another procedure, potentially delaying construction by several more months.

Remaining options

After the tender process ended without any bids, the Island Sports Institute of the Cabildo of Gran Canaria has several alternatives to move the project forward.

One option is to launch a new tender with improved conditions, addressing issues highlighted by the AECP.

Another possibility is to use a negotiated procedure without publication, an exceptional route allowed under Article 168 of the Public Sector Contracts Law. However, this option can only be used if the original contract conditions remain unchanged. The PP (partido popular, opposition party) spokesperson in the Cabildo has ruled out this possibility because the regulations specify that under no circumstances can the tender price be increased or the payment system modified.

Regardless of the decision taken, the construction could be delayed by at least three months. This means that if works begin as early as October, the construction company would have only 33 months to meet the deadlines set by the most important football organisation in the world.