The Generalitat was compelled to support the Society for Digital Transformation Projects (SPTD), formerly the Thematic Projects Society. In a climate where income relies on renting space to companies, the high costs associated with the new Digital Zone headquarters in the Port of Alicante, alongside expenses from the Volvo Ocean Race, materials, and taxes, threaten the project’s sustainability for the current year and the next. To secure continuity, a capital increase of 21.2 million euros is planned. Meanwhile, the Innovation Agency’s (AVI) budget is set to fall by 9.4% to 68.6 million. The Consell states that this reduction will have minimal impact on the organization’s key programs or its ability to meet committed obligations. [Source: Generalitat authorities]
The SPTD board discussed the situation this Monday. At the meeting, the sole partner, the Generalitat, was presented with a proposal to increase the capital reflected in the approved 2023 budgets by 21,199,894.96 euros through a monetary contribution, issuing 57,524 new registered shares with a nominal value of 368.54 euros each. [Source: SPTD board minutes]
In fact, the Generalitat’s budget already allocates the amount needed for this capital increase within SPTD’s financing activities for 2023. The operation underpins the preparation of the company’s 2023 and 2024 budgets. With this contribution, the institution can end the year on solid footing and begin the next year without financial strain. [Source: Generalitat fiscal planning]
Digital District headquarters at port becomes more expensive due to establishment issues
Part of the strain stems from the company projecting only 1.70 million euros in operating income for 2023. The revenue profile is largely tied to Digital District activities, and the regional manager has emphasized from the outset that the project has evolved into a co-working space rental service in Alicante. [Source: regional manager remarks]
The planned expenditures for the year total 34.72 million euros. They must be covered by the capital increase, SPTD’s equity, liquidity in the current account, the year-end balance from 2022, or the collection of existing debts. The expenses include the budget for operations and outputs. The Volvo Ocean Race costs, though paid in previous years, are attributed to the current year, amounting to 6.5 million plus 3.5 million in organizational and village fees. Additional costs push the race-related outlay to 11 million before VAT. [Source: budget documents]
The company’s investments in the Volvo Ocean Race total 7 million euros, with 5 million tied to work at the Digital Zone headquarters at Pier 5 of the port. Energy bills have surged to 4 million (three years ago the line item was 900,000 euros), maintenance costs at 4 million, and personnel costs at another 1 million. Material and tax expenses are also rising, along with 700 thousand euros in tax, 700 thousand euros in security, and 500 thousand euros for cleaning. External contracts include Distrito Talento at 800,000 euros annually and other agreements aimed at attracting international companies for roughly 900,000 euros over the next three years. [Source: financial statements]
Ciudad de la Luz launches a Trade School with its first 170 students
The Ministry of Innovation, Industry, Trade and Tourism, led by Nuria Montes, conveys a message of stability. With this capital increase, the viability of the project is assured and initial steps toward reviving the company are reinforced, with a focus on the Ciudad de la Luz studios, envisaged as a significant economic asset for the Alicante province and the Valencian Community. [Source: ministry briefing]
Montes noted the strong revenue potential seen in interest from national and international operators to use the facilities. She pointed to Netflix’s production and Amenábar’s film project as examples of activity tied to the studios, with filming scheduled to begin in February for six weeks. [Source: ministry remarks]
In addition, SPTD’s director, Fermín Crespo, stated that part of the effort aims to reduce social fat, and he pledged that the Digital District project will adopt a broader approach beyond mere co-working space rental. The plan emphasizes internationalization and attracting companies, with the goal of adding value to the technological centers envisioned by the Generalitat for the ports across the Community’s three provincial capitals. [Source: SPTD leadership statements]
preliminary draft
The AVI first draft budget, prepared under Nuria Montes’ department, notes that despite the funding cut, new actions to strengthen and develop the Valencian Community’s innovation system are warranted. The councilor explains that the draft recognizes AVI’s important work and the government’s commitment to companies and to improving Valencia’s competitive ecosystem. Some questions remain, however, about whether AVI will continue to operate as is or be integrated into a different departmental structure. [Source: AVI briefing]
The ministry highlights that the draft also reflects ongoing efforts to support innovation, entrepreneurship, and regional industry growth, underscoring the government’s intent to sustain progress even with reduced funds. [Source: governmental summary]