Torrevieja Forfeits 1.6 Million in EU Funds for Portalicos Project

The City Council terminates the contract with the awarded company due to breach of obligations, leading to the loss of Next Generation-EU funds over majority resident rejection.

Generic image of a construction site with building materials.
IA

Generic image of a construction site with building materials.

The Torrevieja City Council has initiated proceedings to terminate the contract for the Portalicos rehabilitation works, forfeiting over 1.6 million euros in European aid from the Barrios Program.

The comprehensive rehabilitation of the Portalicos area will not proceed. The Torrevieja City Council has officially informed the Generalitat Valenciana of its definitive withdrawal from European aid under the Barrios Program, valued at over 1.6 million euros, following a majority rejection of the planned interventions by property owners.
The Local Government Board has approved the initiation of the file to resolve the contract for the works, financed by Next Generation-EU funds. As explained by the Councilor for Urban Services, Sandra Sánchez, the awarded company, GRUEXMA S.L., failed to submit the mandatory Health and Safety Plan within the deadline, a document essential for commencing any activity. The contract was signed on February 23, 2026, and stipulated that the site survey and commencement of works should occur within one month.
Concurrently, the council has declared the Portalicos project closed after noting the residents' opposition to the proposed solutions aimed at achieving the energy efficiency targets required by the aid call. The intervention included the integral rehabilitation of the La Muralla, Elyos, and Geráneos buildings, incorporating energy improvements and structural defect repairs. The works had been awarded for 1,621,976.10 euros, including VAT, with no cost to the owners.
Two of the initially included properties, Elyos and Geráneos, were excluded even before the tender process due to insufficient owner adhesions to guarantee the minimum energy savings required by the European subsidy. In the La Muralla building, comprising 271 homes, owners initially supported the initiative and planned interventions, such as installing aerothermal systems and photovoltaic panels expected to yield 45% to 60% energy improvements. However, as the location of new installations was specified, a portion of residents withdrew their support.
Despite this setback, the Barrios Program continues in other areas of the city, such as Torresal (energy rehabilitation) and Colonia San Esteban (urban regeneration and energy improvement). The execution deadlines for ongoing projects have been extended: until August 14, 2026, for Torresal and until January 8, 2027, for Colonia San Esteban (building rehabilitation), with an extension until February 5, 2027, for urban regeneration.