Orihuela Demands 23 Million Euros from Former Waste Service Contractor

The City Council initiates proceedings to nullify the 2008 concession following the 'Caso Brugal' ruling, potentially leading to a significant financial claim.

Generic image of a waste collection truck operating in an urban environment.
IA

Generic image of a waste collection truck operating in an urban environment.

The Orihuela City Council will bring to the next municipal plenary session the start of an investigation to review and declare null the award of the waste collection and street cleaning service made in 2008.

This decision could lead to a financial claim exceeding 23 million euros against the former contractor. The local government's proposal is based on a recent ruling by the Provincial Court of Alicante, within the framework of the 'Caso Brugal', which concluded that privileged information was used during the bidding process, granting an undue competitive advantage to the temporary joint venture that was awarded the contract.
Although the concession was terminated in 2012 and the service has since been provided directly by the City Council, the council believes there are still pending legal and economic consequences. Among these is a legal proceeding initiated by the former contractor, claiming nearly 11 million euros for damages arising from the early termination of the contract.
The municipal legal services now argue that the criminal ruling introduces sufficient elements to question the validity of the original award. Consequently, the report accompanying the plenary proposal argues that no economic compensation should be recognized based on a contract whose acquisition was conditioned by actions declared illicit by the courts.
Furthermore, the City Council has incorporated into the file a technical assessment of the costs it believes the local administration has had to bear since the concession's extinction. The document quantifies the economic damages caused by the situation generated after the award at 23.06 million euros, including expenses from direct service management and resources used to ensure its provision.
If the review of the award proceeds, the council would not only reject the company's financial claim but also take action to reclaim the aforementioned amount from the former contractor, without prejudice to adjustments from the final contract settlement. The agreement also includes a period for interested parties to be heard and for the file to be publicly displayed, allowing for objections before a final resolution.
This initiative coincides with the transformation of the waste management model. The plenary approved in 2025 for the service to be managed by the municipal company Servicio de Gestión Medioambiental (SGM), although its definitive implementation has not yet materialized. In the meantime, a modernization plan has been executed, including the acquisition of a new fleet of vehicles for nearly 3.5 million euros and the replacement of containers.