Canarian Government Demands One Million Euros Back from Las Palmas de Gran Canaria City Council

The subsidy, intended for a section of the MetroGuagua project, was not executed within the established timeframe by the local authority.

Generic image of an urban street with a bus lane, representing a public transport project.
IA

Generic image of an urban street with a bus lane, representing a public transport project.

The Government of Canarias has initiated proceedings to reclaim one million euros from the Las Palmas de Gran Canaria City Council, a subsidy granted in 2023 for the execution of a MetroGuagua section that was not completed on schedule.

The subsidy, awarded by the Ministry of Public Works, Housing and Mobility, was allocated for section 7.3 of the MetroGuagua project, specifically the part running along Simón Bolívar Street, between Juan Manuel Durán Street and Comandante Ramón Franco Square, near Santa Catalina Park. The delay in the works in this area has led the autonomous executive to demand the reimbursement of the funds.
The total investment for this section was estimated at 2.83 million euros, including the one million contributed by the Autonomous Community. The plan envisioned the creation of two exclusive lanes for the MetroGuagua, the re-naturalization of the boulevards with soft paving, and improvements to the existing bike lane and children's playground.
The subsidy was granted in late December 2022, with a maximum execution period until December 31, 2023. The funds were paid in January 2023, coinciding with the first problems in the project, such as ground instability and the appearance of unforeseen services in the Santa Catalina underpass.

"The total or partial non-compliance with the objective, activity, project, or behavior that underpins the concession determines the obligation to reimburse the amounts received."

the regional councillor's order
Although an extension was granted until July 31, 2025, the City Council later requested to modify the purpose of the subsidy and a new extension until October 2028. This request was rejected in March 2026 by the Ministry of Public Works, considering that it altered the purpose of the aid. Consequently, the General Directorate of Transport and Mobility declared that the subsidy had not been justified and notified the City Council on March 19 of the demand for the full reimbursement of one million euros, plus late payment interest.
The Government of Canarias has given the Las Palmas de Gran Canaria City Council a fifteen-day period to present any arguments it deems appropriate.