Belate Tunnel construction disputes in Navarre

Construction of the Belate Tunnel in Navarre has experienced significant delays and periods of inactivity due to financial and legal disputes between the Government of Navarre and the contractor consortium, which includes Acciona and Construcciones Osés.

Initially, the slowdown was attributed to disagreements over the pricing of completed works and the processing of modified project agreements, with contractors challenging payment certifications totaling approximately 11.7 million euros. While government officials initially described the situation as an “intermediate situation” between construction phases, the project had already faced a delay of at least six months.

The situation escalated following a legal setback when the government’s Legal Advisory department rejected a proposal to pay 8.3 million euros in cost overruns to the consortium. The administration had attempted to settle these costs through the principle of unjust enrichment, treating them as independent works. The rejection has necessitated a technical review of pending works, leaving the excavation of the lower gallery largely halted. The disputed funds cover expenses including a new truss model, powder magazines, and a water treatment plant.