Francisco Ruiz, VOX representative at the Mancha Real City Council, has stated that the plan for the municipality's future senior residence cannot be approved in its current form. According to his criticisms, the presented economic feasibility study suffers from "profound gaps and technical inconsistencies that invalidate it," making it, in his opinion, a "reckless" project that "endangers public assets and the viability of an essential service."
Ruiz has described the 47% profitability that the report estimates for the investment as "unreal." He pointed out that this Internal Rate of Return (IRR) is "extraordinarily high" and "neither normal nor usual" in the socio-health sector, which is characterized by moderate margins and high fixed operating costs. According to the councilor, proposing such profits "demonstrates that the study has been prepared with its back to market reality."
Another point questioned by the VOX spokesperson is the document's alleged ignorance of the center's income dependency on public tariffs. "Billing will be subject to the public tariffs set by the Junta de Andalucía," Ruiz indicated, which, in his view, implies "a total absence of price control by the company, a strict limitation of maximum revenue, and a high financial risk in the face of any regulatory change or changes in concert conditions."
Furthermore, Ruiz criticized that the study sets an annual concession fee for the City Council of only 30,000 euros, an amount he considers "extremely low" compared to the value of the public asset being transferred. He described it as "surprising and disproportionate" that the municipality receives such an "insignificant" consideration for a center that will generate over 2 million euros in revenue annually.
The VOX representative concluded that "this project raises reasonable doubts about its viability," and therefore they propose its review and the drafting of a new "rigorous and realistic" report.
