Public works tenders rise again in 2023 across administrations
Public sector tender activity continued its upward trajectory through 2023. From January through September, public administrations awarded contracts valued at 21.469 million. Data published by SEOPAN, the employer association representing leading construction and infrastructure firms, shows that 19.368 million euros represent a 10.8 percent increase compared with the same period in the previous year, when tendering activity was recorded at a lower level.
Looking at the wider public sector, the General State Administration boosted its contracting considerably, with a 55 percent year over year rise during the January-to-September window. Between January and September 2022 the value stood at 5.341 million, rising to 8.298 million in the same nine-month period of 2023. Some autonomous communities and local bodies, however, pulled back on investments. Regional public entities reduced public works tenders by 7.9 percent to 5.847 million, while municipal councils registered a 4.6 percent decline, culminating in 7.324 million in the first nine months of 2023.
Although most of the state’s public works investment is directed to construction activities, 62 percent goes toward construction works and 38 percent toward construction-related services. The breakdown shows 8.113 million euros allocated to construction activities against 13.355 million in other construction-related segments. The dominant item remains rail projects, which have consumed 4.185 million so far this year. Highways follow closely, totaling 3.397 million when ports and other transportation infrastructure are included. Together, transportation investments amount to 8.113 million euros. The next category covers the promotion and construction of social facilities, housing, health, and sports complexes, with a dedicated allocation of 3.886 million.
Following the real estate downturn triggered by the 2007–2013 public works squeeze, investments began a gradual recovery. In the last full year of the last construction boom, investments reached numbers between 40 and 45 billion. For 2023, projections place the total around 30 billion.
General State Administration
The Ministry of Transport, Mobility and Urban Agenda, known as MITMA, was among the largest drivers of public works tender activity in 2023, registering a substantial year-over-year increase of about 48 percent. The Ministry of Ecological Transition has monitored the nine-month results for 2022, noting noteworthy momentum. Within MITMA, the Directorate-General of Highways reported contracts worth 1.42 billion, a rise of roughly 146 percent over the previous period. The railway manager Adif also contributed significantly, with higher allocations to public works, reaching 3.565 billion euros, about 25 percent more than in the prior January–September interval.
Under the leadership of Teresa Ribera, the Directorate-General of Water posted a notable gain, with investments of 121 million euros and a growth rate of 1,675 percent in that segment. The Hydrographic Confederations nearly doubled their tenders, while some bodies within the ministry reduced contracts by more than 70 percent compared with the Directorate-General for Coastal and Marine Sustainability and other units. SEOPAN notes that the remaining 20 ministries collectively increased their public works tenders by about 150 percent, rising from 637 million euros to 1.599 billion euros.
Which communities expanded public works?
The Andalusian regional government boosted its public affairs spending by nearly 78 percent, surpassing 1.161 million and signaling stronger investment in regional projects. Other regions increasing their budgets include Cantabria, the Valencian Community, and Aragon, with growth rates around 30 percent and 15 percent respectively — though the overall regional trend shows some cooling overall.
Regions with notable reductions include Navarre, which cut investments by about 80 percent, finishing the period with tenders around 42 million. The Community of Madrid fell roughly 67 percent, followed by La Rioja, Asturias, and the Region of Murcia with declines near 50 percent or more. La Rioja remains the region with the smallest public works footprint in this period, at roughly 23 million.
Local governments
Municipal councils, assemblies, and other administrations grouped by SEOPAN as local bodies increased tenders by about 30 to 34 percent. By contrast, city councils in capital cities and in other large municipalities reduced contracts by around 2 percent to 17 percent. Town halls, along with Adif and the General Directorate of Highways, invested more in internal improvements, contributing a total of 5.759 million euros between January and September this year.
Citations: SEOPAN report on public works tenders and 2023 government investment patterns.