Deserted Bids Halt 709 Million Euros in Public Works in the Valencian Community

Lack of offers in 978 public tenders by the Generalitat Valenciana prevents project execution and immobilizes budgetary funds.

Generic image of construction blueprints on a wooden table, with a blurred construction site in the background.
IA

Generic image of construction blueprints on a wooden table, with a blurred construction site in the background.

The Valencian Community faces a critical situation with 709 million euros unexecuted due to a lack of offers in 978 public tenders, immobilizing essential funds for the Generalitat.

The cost of public tenders declared deserted continues to grow. Currently, 709 million euros remain unexecuted in the Valencian public coffers due to a lack of offers. This figure stems from 978 public works tenders that are in limbo due to the absence of interested companies in the adjudication processes.
Nationally, 9,819 deserted public tenders were recorded, leading to the paralysis of 4,011 million euros from public funds, an 86.1% increase compared to 2021, according to data from the technological analytical solutions firm Intescia–Doubletrade. The Valencian Community is the second autonomous region with the highest amount of money paralyzed in deserted public tenders.

"The Administration faces an unprecedented situation due to the high volume of stalled budget items."

the company Intescia–Doubletrade
The largest deserted tender in the Valencian Community was for the construction of public protection housing for rent on four municipal plots in the Valencia City Council, for which over 413.5 million euros had been allocated. These 709 million euros corresponding to 978 deserted tenders not only represent unbuilt works but also immobilized budgetary resources, hindering their reallocation to other urgent needs of the Generalitat.
Looking at the different provinces, Valencia stands out as having the most money tied up in deserted tenders, with 543.8 million euros across 470 tenders. It is followed by Alicante, where 142.8 million euros are “frozen” in 366 deserted tenders; and Castellón, where the figure reached 22.5 million euros in 142 unfinished projects.
Political uncertainty, rising raw material costs, and increased labor costs have meant that tender base budgets do not always incorporate the impact of inflation, reducing companies' interest in participating. Furthermore, the rigidity of specifications and administrative complexity increase indirect participation costs, particularly discouraging SMEs and local suppliers.

"Many of the public tenders that have been deserted are financed with European funds, so the delay could lead to the loss of this subsidy."

Salvador Alarcón · commercial director of Intescia–Doubletrade Spain