Municipal council opts for negotiated tender after failed bid, targeting 40-50 affordable units on

Andorra la Vella's municipal council has relaunched a national tender for a regulated-rent housing project in Terra Vella, opting for a negotiated procedure with publicity after the original process failed due to a single non-compliant bid.

The council published the tender in the BOPA gazette on Wednesday. Cònsol Major Sergi González and Housing Councillor Marc Torrent announced the move, stressing public-private partnerships to address the housing crisis. "We continue to back public-private collaboration because responses to the housing crisis must be collective, involving all actors," González said.

The project targets a council-owned plot in Terra Vella—acquired in 2015 and situated opposite the Jovial shopping centre—for 40 to 50 rental units. Monthly rents will cap at €825 for two-bedroom flats and €1,000 for three-bedroom ones in council-managed units, with the council setting allocation criteria and guaranteeing payments. Concessionaire-managed units will follow market rates, enabling firms to propose handling 30% or 50% of the properties.

A viability study accompanying the tender outlines four scenarios over the 50-year maximum concession, after which the building returns to council ownership. Construction costs are estimated at €9.57 million. Projected profits for the concessionaire range from €19.7 million (with annual council contributions of €30,000, adjusted by IPC, and 10% lower rents) to €28.9 million (30% market-rate units). All scenarios ensure the firm recovers its investment with surplus.

Torrent highlighted recent talks with interested companies that shaped the terms for stronger legal and financial security. "We've aimed for a balance that advances the project viably without shifting undue risks to the administration," he noted.

This effort ties into the "Recuperem espais públics" initiative, which includes the CanRodes car park on Antic Camí Ral and the Reviu programme with 19 flats. Firms have until 27 March 2026 to submit proposals.