# Valencia EMT digital project failure

> Live situation record from CLSTR: https://clstr.news/situations/valencia-emt-digital-project-failure
> Updated: 2026-09-23T04:10:06.000Z. Sources: 6. Developments: 2.

The Valencia City Council is returning 1.52 million euros in unused European funds to the Spanish Ministry of Transport and Sustainable Mobility. This decision follows the failure of a digital platform project for the Municipal Transport Company (EMT) of Valencia, which was part of the ‘Connected Cities’ initiative.

The project involved an 11.6 million euro contract awarded to Indra Sistemas for integrated transport and fare management. Despite the EMT having already paid 8.41 million euros, audits indicated the software had a “25% error margin” and “structural instability,” making it unsuitable for production. 

In response to the contract breach, the EMT froze 1.5 million euros in license fees, imposed a 1.01 million euro penalty on Indra, and executed a 505,000 euro bank guarantee. The unspent 1.5 million euros will be reintegrated into the national Recovery Plan funds.

## Timeline

### 2026-09-23: Valencia to pay 343,000 euros for COVID-19 losses

Valencia must pay over 343,000 euros to Esportinat to compensate for revenue losses at the Patraix sports complex caused by COVID-19 pandemic restrictions.

3 sources. https://clstr.news/cluster/valencia-to-pay-343000-euros-for-covid-19-losses

### 2026-09-08: Valencia to return 1.5 million euros following failed EMT digital project

Valencia will return 1.52 million euros in European funds to the Spanish government after a failed digital transport platform project involving Indra Sistemas failed to launch due to technical instability.

4 sources. https://clstr.news/cluster/valencia-to-return-15-million-euros-following-failed-emt-digital-project

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Cite as: Valencia EMT digital project failure. CLSTR, https://clstr.news/situations/valencia-emt-digital-project-failure