La Laguna awards €18.6m El Cardonal rehabilitation contract

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La Laguna Council, through the Municipal Housing and Services Company (MUVISA), announced on Sunday that it has awarded the contract for the El Cardonal Residential Rehabilitation Programme (ERRP), the largest residential rehabilitation project in the Canary Islands and one of the most ambitious urban regeneration schemes ever undertaken in the municipality.

A project backed by European, island and council funding

The award follows the technical and legal assessment of the procurement procedure, which is financed by Next Generation EU European funds, the Cabildo de Tenerife and La Laguna Council, with the council shouldering more than 50% of the total investment.

Works divided into five lots

The works are structured into five lots, based on operational and technical solvency criteria. Lots 1, 2, 3 and 4, covering the comprehensive rehabilitation of 49 residential blocks, have been awarded to Construplan, Construcciones y Planificación S.L.U., while Lot 5, concerning the urban regeneration of the surrounding area, has been awarded to Probisa Vías y Obras S.L.U.

Following the award, a period of 15 working days now begins in which the contract can be formalised, in accordance with the provisions of the Public Sector Contracts Act.

“A decisive step” for La Laguna, says the mayor

The Mayor of La Laguna, Luis Yeray Gutiérrez, said the El Cardonal ERRP represents “a decisive step in the municipal strategy for residential rehabilitation and urban improvement that we are developing in La Laguna”. He added that it is “a large-scale intervention that will allow 49 blocks and the urban surroundings of the neighbourhood to be completely renewed. Our aim is for the work to begin as soon as possible and for residents to have clear information and support throughout the entire process.”

Housing councillor praises “complex process”

In this regard, the Housing Councillor, Adolfo Cordobés, explained that the award “brings to a close a complex process that has required a great technical effort, price updates, inter-administrative coordination and a justified extension of the Recovery, Transformation and Resilience Plan to ensure the execution timescales of this project, but which were necessary to guarantee that the rehabilitation can be carried out with assurances and without passing on extra costs to families”.

“The council has made a very significant financial effort to protect homeowners and to guarantee that this scheme, which has the backing of European funds, can be developed within the established timescales,” said Cordobés, who announced that “with this award, we expect the works to begin before 31 December 2026 and to be completed within the established timescales”.

Structural works, energy efficiency and asbestos removal

The managing director of MUVISA, Domingo Galván, highlighted that the El Cardonal ERRP is “an intervention of enormous technical complexity, which includes structural works, energy efficiency improvements, renewal of installations, removal of asbestos-containing elements, waterproofing of roofs, replacement of window frames, accessibility improvements and comprehensive urban regeneration of the surrounding area. The award in five lots guarantees orderly and efficient execution.”

Final cost comes in €1.7m below budget

The final award cost amounts to €18,653,221.27, representing a reduction of €1.7 million compared with the base tender budget for the execution of the works, set at €20.4 million. This overall saving of 8.75% confirms that the bids are in line with current sector prices and that the procedure has been resolved with technical and financial solvency, without abnormally low bids and while guaranteeing the viability of the project.

It is worth recalling that the total budget of the ERRP amounts to €25,090,583.42, including the drafting of projects, price updates, execution of works and the running of a dedicated citizen advice office in the neighbourhood.

Council covers more than half the total budget

La Laguna Council is contributing €12,943,651.12, more than 50% of the total budget, making it the main funder of the programme and fully absorbing the €3,911,143 increase resulting from price updates, with the aim of guaranteeing the viability of the project and preventing homeowners from having to bear extra costs. European funds and the Cabildo complete the public financing.

Residents to pay just 0.69% of the final budget

The financial distribution of the El Cardonal ERRP ensures a minimal impact on the owners of this housing estate, which is more than 50 years old, as all the homes included in the scheme are privately owned and now require comprehensive intervention to maintain adequate safety and habitability conditions.

Thus, the residents’ contribution is set at €173,632.50 for all 438 homes included in the ERRP, a collective and symbolic sum representing just 0.69% of the final budget, and which may be even lower or zero in cases declared vulnerable. The comprehensive rehabilitation of these buildings is therefore financed almost entirely with public resources.

Open tender published across Europe

The award follows an open tender procedure subject to harmonised regulation, published in the Official Journal of the European Union on 31 July 2026 and on the Public Sector Procurement Platform on 2 August 2026.

Part of a wider municipal rehabilitation strategy

The El Cardonal ERRP forms part of a far-reaching municipal strategy for residential rehabilitation and urban regeneration, one of the largest in the Canary Islands, developed through various ARRU (Urban Regeneration and Renewal Areas), with interventions in estates more than fifty years old such as La Verdellada, Padre Anchieta, Princesa Yballa La Florida and San Luis Gonzaga.

Although all these homes are privately owned, the council and MUVISA are assuming a municipal investment of millions of euros, in addition to the complete management of the files, the drafting of projects, the tenders, the technical direction of the works and coordination with the co-financing administrations — a very significant administrative and operational effort.

Tenders that drew no bids prompt update

Tenders that went unawarded in recent years, caused by outdated state-set prices, have forced the municipality to update budgets with its own funding, avoiding, as far as possible, extra costs falling on homeowners.

Among the next actions planned are the re-tendering of lots 2 and 3 of the Padre Anchieta ARRU, the continuation of the Princesa Yballa La Florida ARRU following the modification of the project to allow residents to remain in place, and the preparation of future rehabilitation phases in other vulnerable neighbourhoods, consolidating a municipal policy that combines public investment, technical rigour and sustained management over time.

Las Chumberas Phase I enters final stretch

Progress is also being made on the Las Chumberas Singular Action Phase I, an intervention now entering its final stretch with finishing touches to the new buildings in this phase, the urbanisation works and the relevant administrative procedures. Both the area’s residents’ associations and the neighbourhood as a whole have recently been informed of these actions at separate meetings.

This is a shared intervention between four administrations (the Ministry of Housing, the Government of the Canary Islands, the Cabildo de Tenerife and La Laguna Council), governed by an inter-administrative agreement and a Monitoring Committee.

Rehabilitation, energy efficiency and protecting families

With the award of the El Cardonal ERRP, La Laguna is consolidating a public housing policy based on rehabilitation, energy efficiency, urban regeneration and the protection of families, reinforcing its commitment to the sustainable transformation of the municipality.

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