Local Investment Fund
The Fund, endowed with 8,000 million Euros, is aimed at increasing public investments at a local level by financing newly planned public works which will start to be implemented in 2009.
It will serve to finance a set of actions that, given their features, will contribute to revitalise economy and to enhance job creation and preservation in the short term, while strengthening the capitalisation of our economy, increasing the investing potential of our municipalities.
The distribution of the funds among more than 8,000 municipalities has been carried out according to a strict population criterion, with the outmost objectivity and transparency. The amounts granted to each municipality have already been published by the Ministry for Public Administrations and the resulting per capita investment totals to 177 Euros.
Since this is an urgent measure and in order to start implementing the different projects as soon as possible, the maximum budget for them amounts to five million Euros. The works must be carried out during 2009 and their conclusion must be justified by the first quarter of 2010.
The works that are eligible for financing at the different municipalities fall within their competences and they are characterised by their productive character or by their special social usefulness. Financeable works include:
- Refurbishment or improvement works on public urban areas and industrial areas.
- Equipment and infrastructure works on roads, sewage systems, street lighting or telecommunications.
- Construction, refurbishment or improvement works on social, health care, funerary, schooling, cultural or sports furnishings.
- Works having to do with the environment, with pollution prevention and with the promotion of energy efficiency.
- Works to eliminate architectural barriers.
- Works to preserve municipal and historical heritage.
- Construction or improvement works on the water supply system and on the wastewater purification system.
- Works to improve road safety and to promote sustainable urban mobility.
- Works for fire prevention and to promote tourism.
Beneficiaries
The Local Investment Fund is expected to contribute to the creation of approximately 225,000 new jobs. Given the relevance of the projects benefitting from these measures, in most cases it will serve to reallocate the workers and resources that suffered the consequences of the readjustment of the construction sector in Spain. Of course, this fund is also expected to favour the viability and involvement of small and medium-sized companies carrying out activities related to the construction sector, such as engineering services, architecture services, logistics and the production and mobilisation of materials, machinery and equipment. Besides, it will contribute to the improvement of public local infrastructures.
Development
This measure was approved of by the Council of Ministers last 28 November 2008. It will be implemented through an emergency procedure that will make it possible to speed up the whole process, from the calls for tenders to the acceptance of the project bids so that it may have an even stronger impact upon employment. The period for presenting the projects started out last 10 December and it will finish next 24 January 2009. The Plan is run by the Ministry for Public Administrations. Once the corresponding projects have been awarded, the State will supply 70% of the total cost and the rest will be paid at the end, once a statement justifying the destiny of the funds is elaborated.
