Valencia to return 1.5 million euros following failed EMT digital project

The Valencia City Council will return 1.52 million euros in unused European funds to the Spanish Ministry of Transport and Sustainable Mobility. This follows the failure of a digital platform project for the Municipal Transport Company (EMT) of Valencia.

The project, part of the 'Connected Cities' initiative, involved a contract awarded to Indra Sistemas for 11.6 million euros to develop a digital platform for integrated transport and fare management across several Spanish cities. Although the EMT had already paid Indra 8.41 million euros, audits revealed the software suffered from structural instability and a 25% error margin, preventing it from being deployed in a production environment.

As a result of the contract breach, the EMT froze an additional 1.5 million euros intended for licenses, imposed a 1.01 million euro penalty on Indra, and executed a 505,000 euro bank guarantee. The unexecuted 1.5 million euros will now be reintegrated into the national Recovery Plan funds.