Municipal council issues new tender after initial bid failed, aiming for 40-50 affordable units via

Andorra la Vella's municipal council has relaunched a national tender for a regulated-rent housing project in Terra Vella through a negotiated procedure with publicity, following the failure of the initial process where the single bid fell short of requirements.

The council published the new tender in the BOPA gazette on Wednesday. Cònsol Major Sergi González and Housing Councillor Marc Torrent, responsible for Digital Transformation and New Technologies, stressed the importance of public-private partnerships to combat the housing shortage. González stated that solutions require collective effort from all stakeholders. Torrent added that recent talks with interested firms allowed refinements to the tender terms, enhancing legal and financial safeguards. The council will guarantee rents for units it manages directly, while those handled by the concessionaire follow market conditions.

The project involves a council-owned plot in Terra Vella, acquired in 2015 and facing the Jovial shopping centre, for 40 to 50 rental units. Regulated rents will not exceed €825 per month for two-bedroom flats or €1,000 for three-bedroom ones, with the council setting allocation rules. Bidders can propose managing 30% or 50% of units at market rates.

A viability study outlines four scenarios over the 50-year maximum concession, after which the building returns to council control. Construction is estimated at €9.57 million, down from the prior €9.9 million figure. Concessionaire returns are projected between €19.7 million—in a scenario with €30,000 annual council contributions (IPC-adjusted) and 10% lower rents—and €28.9 million with 30% market-rate units. All models ensure investment recovery plus surplus.

Torrent highlighted the balanced approach to advance the project without excessive risks to public funds. The effort aligns with the "Recuperem espais públics" initiative, including the CanRodes car park on Antic Camí Ral and the Reviu programme with 19 flats. Bids are due by 27 March 2026.