Major road infrastructure agreement shapes Canary Islands’ transport future
The road agreement signed in 2018 and extended until 2030 reduces the financing from the State by 24.7 million euros as a result of the remainders that have accumulated from the budget allocated in the first years of the agreement and which were not executed, specifically between December 2018 and December 2022. The total investment agreed between the Ministry of Transport and the Regional Ministry of Public Works until 2030 is 1,448.2 million euros compared to the 1,472.9 million euros planned when the second addendum to the agreement was signed in 2022.
Between 2025 and 2030, 888 million euros are expected to be invested, which represents 61% of the overall amount and obliges the Autonomous Community to accelerate the execution of expenditure compared to what has happened up to now. This massive investment will significantly improve transportation infrastructure across all seven Canary Islands, benefiting both residents and the millions of tourists who visit the archipelago each year.
Evolution of the road agreement through multiple amendments
The road agreement is now in its third addendum, which involves a new modification of the limits and the number of annual payments set when it was originally signed. In 2018, the agreement was signed between the two governments for an amount of 1,200 million euros between that year and 2025, with a gradual increase in the annual instalments of between 60 and 250 million. The addendum published in the Official Canary Islands Gazette (BOC) contained a list of 69 roads on the seven islands, which are basically the ones that are still being maintained seven years later.
The first addendum was signed in December 2019, barely a year later, and the second in December 2022 to adapt the annual payments again to the real pace of the works in view of the non-execution of the funds and the delays in the roads. This addendum increased the overall investment to 1,472 million and was extended to 2027 as a result of the amounts owed by the State to the Canary Islands, following the Supreme Court rulings that gave the Autonomous Community the right in the lawsuit that arose when the central government of the PP unilaterally reduced the annual payments of the road agreement.
Third addendum addresses execution delays
In the recently agreed third addendum, a new extension of three more years, until 2030, was made due to the high level of investment not executed in the years 2023 and 2024, so that the remainders will be included in subsequent years. Likewise, the Canary Islands Government undertakes to execute the 2025 annual instalment, while the remainders will be distributed between 2026 and 2027.
In the agreement, the Ministry of Transport and Sustainable Mobility reduces its contribution “to regularise the actual amount executed during the period between 16 December 2018 and 31 December 2022 derived from the 2006 agreement – the date of the previous road agreement between the Canary Islands and the State – which represents a decrease in the total amount of 24,733,230.31 euros”, according to the text of the new agreement.
Challenges in budget execution and implementation
According to the new annual instalments agreed, the Ministry of Public Works must assume an execution of close to 900 million euros until 2030, which represents 60% of the total of the agreement, as opposed to the accumulation of carryovers from previous years due to the low execution. An example is what has happened in the last two years, since in 2023, the year of the regional elections and the change of government, 210 million euros were planned to be invested and 156.1 million were executed, that is, 53.8 million less.
In 2024 the forecast was 355 million euros and 176.2 million euros were spent, i.e. half of what was planned. This situation has alarmed the Ministry led by Óscar Puente and worries the Canarian government because of the delay it means for the roads in progress and those that are already planned and with finalised projects.
Future investment schedule and key infrastructure projects
With the third addendum, the agreement is extended until 2030 and the annual payments are distributed in such a way that this year a sum of 204.8 million euros is envisaged to be executed. In 2026, 215 million euros are foreseen, in 2027, 210 million euros and in 2028, 120 million euros. In 2029, an annuity of 93.6 million euros is foreseen, and in 2030, 45.4 million euros as the final remainder of the agreement.
The government’s plan with this five-year extension is to allow time to finish the most important roads currently under construction, including the Agaete-La Aldea road, which is expected to be completed between 2027 and 2028, and the Anillo Insular de Tenerife, complex and costly roads, as well as other roads that are still under construction on all the islands. These major infrastructure improvements will dramatically enhance travel experiences for visitors exploring the diverse landscapes of the Canary Islands, while providing crucial connectivity improvements for local communities across the archipelago.
