The City Council investigates the payment of almost 50 million in electricity bills of Calle 30 Street
July 16, 2018
The tunnels of the M-30 are managed by the public-private partnership Madrid Calle 30.
Madrid City Council is investigating the payment of almost 50 million euros corresponding to the electricity bills of Madrid Calle 30, the public-private company that manages the M-30 motorway. As he has known 20 minutes , the Consistory has “reasonable doubts” about the responsibility of that cost taking into account that the list of administrative clauses states that the private partner is the one who must assume the electricity cost. Since 2005, with Alberto Ruiz-Gallardón (2003-2011) and Ana Botella (2012-2015) in the Mayor’s Office, both of the PP, the mixed society Madrid Calle 30 is the one that has faced these payments.
The municipal investigations focus on two specifications approved on April 27, 2005 for the award of the contract to a private company that would join the joint venture with the City Council. The specifications in question are the administrative clauses and the technical prescriptions of the public tender.
The company Madrid Calle 30 was created in 2004 during the mandate of Alberto Ruiz-Gallardón (2003-2011) to build the tunnels of the M-30 In the list of administrative clauses , in section 2.6.2 of Annex III, referen conservation operations in electrical installations, it is specified that the private partner would be responsible for the cost of the electric bill of all the facilities of the M-30. That is to say, that the private company that entered the society would assume the payment of the electricity bills. For its part, the technical specifications sheet , in its article 22.214.171.124, details that Calle 30 Madrid will be responsible for the payment of the electric bill for all the facilities associated with the M-30. This involves carrying out the processing of the debt.
Therefore, as it appears in these documents, the management of the payment was in charge of the public-private partnership, but the money would come out of the private coffers. However, it has not been like that for the past eleven years. Since 2005, Calle 30 49,655,635.82 euros of electricity has been paid for by Calle Madrid. Only last year the receipt amounted to 5,090,526.54 euros. The highest fatura, of 7,872,990.00 euros , dates from 2007.
“We do not think it appropriate that during the last few years the interests of private construction companies have been put before public interests, the positions of private companies have been defended without anyone having discussed them, always looking with the eyes of the successful bidder. we are going to do now it is simply to ask “, have indicated municipal sources. “You just need to apply common sense to understand what the sheets say,” they added.
The company Madrid Calle 30 was created in 2004 during the mandate of Alberto Ruiz-Gallardón (2003-2011) to build the tunnels of the M-30. At the end of that year, the City Council agreed to modify the form of service management, which went from direct to indirect through a mixed economy company. In August 2005, the tender was awarded in favor of EMESA (formed by Ferrovial, Dragados and API Conservación). Thus, Calle 30 Madrid was 80% owned by the City Council while the remaining 20% belongs to EMESA. Every year, the company receives around 125 million euros from the municipal budget, of which it only spends 37 million euros on maintenance tasks, such as fixing potholes or replacing lampposts.
502 million in taxes, interest and dividends
What is evident is that the Consistory is not comfortable with the situation in which Calle 30 is located in Madrid. In fact, it already publicly denounced last November that since 2004 the joint venture has disbursed more than 502 million euros between taxes , interest on loans and dividends distributed to the private partner. Only in the VAT (289) and in the Corporation Tax (106) the City Council has paid 395 million euros. These are taxes that could have been saved if the City Council had taken over the work and subsequent maintenance and infrastructure management. The contract joins the City Council with EMESA until 2040, although the agreement could be resolved as early as 2025 with the purchase of its share from the private partner. The intention of the municipal government, however, is to resolve it beforehand.
This is not the first alleged irregularity that the City Council has detected in the mixed society. The delegate of Economy and Finance, Carlos Sanchez Mato, denounced last Wednesday that they are also investigating the “falsification of the certification of a work” in a bridge of the South Nudo V , already with the government of Ahora Madrid in the Town Hall and being him President of the Madrid Calle 30 company.
The certification occurred last December legitimizing and paying the part of a work that had not been carried out by a company that since Christmas has not completed the work. The total of the action amounts to 266,000 euros and the part that has been certified and not made is about 24,000 euros , explained Sánchez Mato.