Spain commits € 17 billion to infrastructure

Spanish president, Jose Luis Rodriquez Zapatero has announced plans for € 17 billion to be invested in infrastructure projects across the country over the next two years.

In what has been termed an extraordinary infrastructure plan, Mr Zapatero said the two year programme would help re-launch the economy and create jobs. "The investment will have a twofold purpose," he said. "We will allocate € 11 billion to new construction projects and a further € 6 billion will be directed towards the conservation and maintenance of existing infrastructure"

The investment will be met by companies, the Official Credit Institute (OCI), the European Investment Bank (EIB) and other financial entities according to Mr Zapatero. "In exchange for their efforts, the companies will share in the profits from the operation of the infrastructure," he said.

Mr Zapatero said the investment represented an innovative public-private collaboration and will enable the current economic difficulties to be navigated while containing costs and allowing investment to continue.

He confirmed that 70% of the funding for new projects (€ 7,7 billion) would be used for railway projects while the remaining 30% (€ 3,3 billion) would be allocated to road projects.

"When finished, the projects will contribute towards improving the efficiency and competitiveness of our economy, to reducing transport costs and to improving market connections," he said.