When Rafa Climent became minister two terms ago, few could foresee the challenges awaiting Alicante. Yet he faced them with a steady hand, even as criticism from the groups most affected tested his resolve.
Key among the issues was the Alicante State Confederation of Business’s commercial center, a bold venture that ultimately dissolved under heavy debt. Today, with the city council actively involved, there is a promising educational future for the site, despite a protracted dispute over ownership among IVF, Servef and Coepa that required careful consideration and support.
A similar tension arose at Fundesem, where Ivace sought to end the lease on its building due to mounting debt. A calm still pervades, while stakeholders wait to see if voluntary bankruptcy will be the chosen path by the organization.
The Alicante Trade Fair Authority (IFA) also faced a rocky start, a significant crossroad that eventually yielded a positive outcome. The council agreed to a 70 million euro debt assumption by the Consell. This relieved the burden and opened a route for a plan to modernize the fairground and related activities, navigating disagreements about the management model, including issues with the Ministry of Finance.
A new management model for IFA after debt exemption
Alicante Trade Fair Authority (IFA) now holds greater potential after the early strains. The heavy debt that slowed its growth has been cleared, and this allows a move toward a public-private operating model that supports broader commercial and regional initiatives.
To enable this shift, the Consell, led by the Ministry of Economy, arranged the debt transfer. Rafa Climent explained that the aim is not about assigning blame but about establishing a framework where public oversight and private administration can work hand in hand, because entrepreneurs understand local needs best.
In this transition, a firm will soon shape IFA’s future. After the holidays, the current director is expected to be replaced by Beatriz Serrano, with the appointment to be decided by a vote proposed by the president, Climent being the chief advocate.
“Our goal is for IFA to be profitable,” the minister noted. “Profitability has rarely been in doubt outside the pandemic years, and that is the path we should follow.”
Beatriz Serrano echoed the sentiment, underscoring that IFA provides a fundamental service for the state: a venue to host events and foster business activity.
Consell accepts IFA assets for debt settlement
Investments are planned for the first stage, aiming to upgrade fairground infrastructures while addressing urban development adjacent to IFA. The plan envisions settling the debt through the orderly relocation of the aging center and the establishment of innovative companies, managed by a specialized project company. This was confirmed by the Consell last Friday.
The objective remains to expand IFA’s activity. Serrano notes that there are now twenty annual fairs and a similar number of other events. The intention is to broaden activity across sectors by incorporating new thematic fairs. Although the shoe fair has gained recognition, the goal is broader growth that benefits local entrepreneurs.
5.5 million investment to revive Coepa’s old commercial center
After years of neglect, the former Coepa commercial center will be revitalized. The Ministry of Economy is finalizing a rehabilitation plan to begin work next year, with a view to offering education and business services in the province. This follows a lengthy agreement with the Alicante City Council to take the initiative forward.
The center’s construction dates back to 2001 as a response to a lack of specialized labor in sectors like construction and hospitality management. A three-way agreement saw the city council provide land, while Generalitat financed construction. The project, costing 6.8 million euros, benefited from subsidies from Servef and a mortgage from IVF, with Coepa responsible for training programs, subsidized by the Consell.
However, the economic crisis cut funding for unemployment education, and Coepa could not participate in campaigns. The property and its finances deteriorated, culminating in IVF reclaiming the loan and Servef demanding repayment after Coepa lost its main income source.
Trade center sinks Coepa
From that point, the building fell into disrepair. Earlier this year, an agreement was reached among Servef, IVF and the Alicante City Council to rehabilitate the infrastructure as a training center. The project envisions a 5.5 million euro budget to repurpose the site for both employed and unemployed residents, with a long-term contract to Labora along with support for entrepreneurship and active employment policies focused on business needs.
Fundesem has completed a viability plan to attend business school
The latest challenge in the province involves Fundesem business school after Ivace moved to terminate its lease due to defaults. The situation is currently on hold as the school finalizes a viability plan to continue operations on the current property. The conflict emerged last June when Ivace confirmed the lease termination and demanded repayment of debts amounting to 1.65 million euros since 2012. The school proposed settling with an agreement with the European University, but the plan did not progress.
Ivace’s decision drew criticism from the City Council and local business leaders, prompting minister Climent and Mayor Luis Barcala to offer Fundesem a new path forward, including a 600,000 euro immediate payment to the Generalitat. Yet other debts brought the total to 2.5 million euros, leading the foundation to propose voluntary bankruptcy to avoid further court claims. The European University subsequently walked away from the deal, and Ivace continued with the lease termination.
Fundesem will ask bankruptcy to renegotiate debt and seek viability
Undeterred, Fundesem’s leadership, headed by Cayetano Sánchez Butrón, is drafting an implementation plan to be submitted soon. Sánchez Butrón stated that operations will continue at the same site, albeit with a leaner structure. The minister has signaled a willingness to explore options that keep the education center alive, regardless of the final setup, emphasizing a spirit of dialogue and resilience.