The Regional Government of Andalusia has completed the procedure for the rescue of the concession for the expansion works of the Costa del Sol Hospital. The payment of EUR12 million (US$ 13.6 million) has been approved by the governing council to end the existing concession agreement, which will enable the council to retender the concession.

The payment to be made will commensurate with the equity value of the investment made by the concessionaire, which will allow board to retake control of operations.

The concession contract included design, build, finance, operation and maintenance of the hospital and a car park for the hospital. The hospital is located about 7km east of Marbella, Spain, next to the highway A-7.

Having been abandoned for eight years, the expansion project will cost more than original concession. The concession was signed with a subsidiary of Abengoa, which is currently in liquidation after going through a bankruptcy proceeding. 

Due to a conflict over the use of the underground parking facilities, which had been granted to the winning company as a formula for financing the project, construction works were halted in the autumn of 2010, when they were already more than 50% complete. The rescuing of the concession will enable construction works to resume.