The government of Tenerife, Spain, has awarded the contract to develop the "Centro Insular del Motor", a racetrack public private partnership (PPP) project, to Kiti Trans SLU.
The project involves the development, operation and maintenance of the racetrack and the access roads for a period of 35 years. To manage the concession, the preferred bidder will establish a 50/50 joint venture with Axia SRL, which will also carry out the construction works.
The total project investment is estimated at €23,8 million (US$26.2 million), of which €21,4 million, will be for the construction of the racetrack and €2,4 million will be for the construction for the access roads.
Construction works are scheduled to begin in July this year and the project is expected to be developed in 21 months.
Tenerife is the largest and most populous island of the seven Canary Islands, it is also the most populated island of Spain, with a land area of 2,034.38 km² and about 900,000 inhabitants. About five million tourists visit Tenerife each year, the island is served by two airports, Tenerife North Airport and Tenerife South Airport.
The government of Tenerife has recently launched a tender process to develop the Tíncer sport complex PPP project. It involves the design, build, finance operation and maintenance of the new facilities during the concession period. The contract has value estimated at €6.5 million (US$7.2 million).
Two months ago the local government of La Gomera, another Canarian island, launched a tender process to develop a healthcare center through a PPP project.