Andorra la Vella Reviews Terra Vella Housing Bid After Failed Tender as Communes Report Surpluses Amid Opposition Push

Andorra la Vella commune has received one formal bid for its negotiated tender to build 40 to 50 regulated-rent housing units at Terra Vella, on a plot opposite the Jovial building. Officials are now reviewing the proposal to decide on contract award, following an earlier tender that failed when its sole offer fell short of requirements.

Cònsol Major Sergi González praised the submission as evidence that public-private partnerships work, calling housing solutions a shared responsibility across sectors. "Business interest shows the model is viable and addresses a genuine national need," he said, framing it within a wider strategy involving owners, institutions, and companies to steadily grow communal rental stock.

Councillor Marc Torrent, responsible for housing, explained the hybrid approach: the commune would manage some units directly, setting eligibility rules, while the concessionaire oversees others. During recent budget liquidation debates, Torrent defended diversification—citing Terra Vella alongside initiatives like Reviu and the Cedre project—against opposition calls for direct public funding. Opposition leader David Astrié criticised delays, arguing the commune's strong finances should cover construction outright rather than relying on private partners, which he said have underdelivered accessible units.

In Encamp, similar tensions emerged as the commune closed 2025 with a €7.9 million surplus and €10.7 million in investments, up 45% from 2024. Cònsol Major Laura Mas revealed multiple meetings with developers for affordable rentals on communal land, but rejected proposals exceeding local averages—such as €750 monthly for 40m² units, against €609 for 60m² market rentals. Opposition councillor Marta Pujol, from Avancem, filed a motion for Thursday's council session questioning progress on electoral pledges like price indicators, developer deals amid ongoing constructions, and plans ahead of rental extension expiries next year. She urged tax incentives, like ITP reductions, to ease access.

Andorra la Vella also ended 2025 with a €4.1 million surplus, €9.5 million in investments (up 25%), and reduced debt, fuelling opposition demands to prioritise housing amid rising pressures.