The Regional Government of the Azores has experienced the need to relaunch tenders for infrastructure projects due to initial rounds not attracting bids. These challenges are attributed to increased costs and logistical difficulties. Notable projects requiring additional rounds include the coastal protection at São Roque do Pico, valued at 43 million euros, the construction of the Tecnopolo-Martec marine research center, over 20 million euros, and the refurbishment of the Health Unit on Corvo Island, at 370,000 euros.
The Regional Secretariat for Tourism, Mobility, and Infrastructures indicated that these issues became more pronounced post-pandemic, as the global health crisis and subsequent military actions in Ukraine have created significant uncertainty and logistical difficulties in the construction sector.
The Azorean Government emphasizes that the region’s “unique challenges” stem from its “insular and dispersed nature,” noting that construction companies tend to prefer projects located near their headquarters to minimize costs.
The administration highlights the impacts of labor and material shortages and the tight deadlines imposed by the Recovery and Resilience Plan (PRR), which have elevated costs and caused companies to hesitate to apply for tenders, fearing they might miss deadlines and compromise investment quality.
However, the Secretariat assured that all its projects under the PRR are “proceeding at cruising speed.”
In Madeira, both the Construction Industry Association (Assicom) and the Construction Workers’ Union (Sicoma) agree that labor shortages have caused delays, though no public projects are left unfinished.
“Private projects suffer more due to this labor shortage because public projects must meet deadlines,” says João Carlos Gomes, Vice-President of Assicom, explaining that businesses prioritize allocating staff to public contracts.
The construction sector employs approximately 16,000 people in the Autonomous Region of Madeira, but both the association and the union argue that an additional 12,000 workers are needed to manage the current workload effectively.
“Some contractors hold projects but cannot start them due to a lack of available labor,” notes Sicoma President Diamantino Alturas, highlighting issues in both skilled and unskilled labor availability.
“The problems would be much worse, causing more delays if it weren’t for the high number of immigrants working here,” he adds, noting the presence of about 8,000 foreign workers, primarily from Asia, Africa, and Brazil.
For Assicom, “this labor shortage means companies can’t fulfill their contracted obligations and struggle to even bid on projects,” explains João Carlos Gomes. He highlights that this situation affects both the public and private sectors, with some entrepreneurs securing orders up to a year and a half in advance.
