Son Moix gets a “bailout”

12/06/2012 00:00

Palma.Payments from the Balearic government and agreements with Palma City Council have enabled works on the Son Moix stadium to continue. The bailout also means that maintenance on the Son Malferit fire station has restarted after having been put on hold since January this year.

The construction company at Son Moix had threatened to stop work if by this month the government hadn't paid the 2 million euros which were due to it under approved invoices. Palma City Council asked for a loan to get the Son Moix stadium reform started. It intends to repay the money through funds available to the council under the Capital Law by virtue of Palma being a capital city.

However, the Balearic government didn't pay 647'000 euros due to the Council under the Capital Law in 2010 nor a further sum of 1 million euros in 2011. A recent meeting between Palma City Councillors and members of the Balearic government have gone a considerable distance to unblocking the impasse. The government has agreed to pay what it owes from 2010 which has satisfied constructors and maintenance companies for now but the payment from 2011 remains uncertain.