The government of Aragon, Spain, has cancelled the development of the new Alcañiz hospital through a concession contract.

According to sources, the new socialist government has decided to cancel the contract after reviewing reports prepared by legal consultants, which have determined that it is possible to save public money by carrying out the project without the participation of the private sector.

It is understood that the €119.6 million (US$133.3 million) new hospital will be developed as a public project in 2016.

In May this year the project had been awarded to a team made up Iridium Concesiones (ACS) and OHL. At that time, the wining consortia beat out competition from three other shortlisted teams: Ferrovial, Inabensa (Abengoa) and  Assignia consortium, and Meridiam. Later the European Investment Bank (EIB) announced that it was mulling financing the project.

The 193-bed hospital would have an area of 73.818 m². The project would involve the construction, finance and maintenance of the new facilities for a period of 20 years.

The design was developed by EACSN Estudio de arquitectura in 2009.

Alcañiz is a town and municipality in the province of Teruel, in the autonomous community of Aragon, Spain. It has a population of about 17,000 inhabitants.