Madrid suspends award of Justice PPP project

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Madrid suspends award of Justice PPP project The Government of Madrid, Spain, has suspended the award of the second phase of the "Ciudad de la Justicia" PPP project.

The government has announced plans to received new proposals from the two shortlisted teams: Ferrovial & Dragados (ACS Group) and Acciona & OHL.

The two teams have three months to submit their proposals. Once received, the government will decide either to continue with the project or to cancel it. If the project is cancelled the government will pay Acciona & OHL the cost of the submitted project, which was selected as the preferred proposal.

The project, which will be carried out in an area of 200,000 m², involves the development and maintenance of new facilities to house 356 courts of the Judicial District of Madrid, 554 judges and magistrates, 202 prosecutors and 362 court clerks among others.

The project comprises the design, construction, financing and facility management of a new Court of Justice under a 30-year concession.

The total project investment is estimated at €510 million (US$565.1 million). The Community of Madrid will pay the preferred bidder a fee of roughly €45 million (US$49.8 million) per year. The concession is worth approximately €1,700 million (US$1,884 million).

The project will lead to a productivity improvement in judicial services, positively affecting citizens and employees, and is expected to improve energy efficiency compared to the currently used buildings. It will be located at the site where the Community of Madrid has already invested €288 million. The investment has included, among others, the development of the new Institute of Legal Medicine.

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