Arrasate Approves 36 Million Euro Loan to Fund Strategic Projects

The municipal plenary session has approved the loan with a majority, reigniting debate on the financing model for the Iturripe sports center, the acquisition of La Merced, and the redevelopment of Sa…

Generic image of hands signing a document at a council meeting.
IA

Generic image of hands signing a document at a council meeting.

The Arrasate City Council approved a 36 million euro loan request this Tuesday to drive three strategic initiatives, sparking renewed debate over the chosen financial model.

The operation received approval with the support of the municipal government (EH Bildu and Elkarrekin Arrasate) and the PSE-EE, while the PNV once again voted against it, maintaining its critical stance on the loan's impact and long-term viability. This debate had previously caused friction during the approval of the 2026 budgets.
The bulk of the loan, 31,200,000 euros, will be allocated to the new Iturripe sports center and the transformation of its surroundings. Additionally, 3,050,000 euros are earmarked for the purchase of the former La Merced school, aiming to develop social rental housing for young people and seniors within an intergenerational project, and 1,790,000 euros for the redevelopment of the San Juan Group.

"Indebtedness should be understood as a financial tool to address planned projects and not necessarily as a burden on municipal accounts."

Joseba Ezpeleta · Councillor for Finance
The Councillor for Finance, Joseba Ezpeleta, defended the operation, emphasizing that indebtedness should be seen as a “financial tool.” The mechanism will function as a “fund” from which partial disbursements will be made as works progress, meaning “interest will only be paid on the amounts used.” The disbursement period will be three years, aligning with the projected execution times, especially for the new Iturripe, estimated to be completed in about 30 months. The municipal government insists that the operation has “all technical and legal guarantees,” supported by favorable reports from the Secretariat and Intervention.

"In the most favorable scenario, annual amortization would be around 2.8 million euros, with total interest close to 12 million over 17 years; while in the most demanding scenario, the figure would rise to about 3.5 million annually, with up to 24 million in interest over the same period."

Ander Garay · PNV Spokesperson
Conversely, the PNV maintained its outright rejection. Its spokesperson, Ander Garay, referred to “technical reports” to discuss various repayment scenarios. The PNV councillor described the operation as being “on the brink of a precipice” for the City Council and advocated for “more responsible” financing formulas, arguing that the decision could leave the Consistory without room for new investments “for 20 years”; a situation he deemed “untenable and reckless.”

"Recklessness, blockage, failure… when the words to use are tranquility, management, and professionalism."

Maider Morras · Mayor
Mayor Maider Morras responded to these statements, rejecting the terms used by the opposition. Morras defended the operation as necessary to execute planned projects and “bring Arrasate to the place it deserves.”
In parallel, the plenary session also reported on the treasury surplus after the liquidation of the 2025 budget, amounting to 7,848,000 euros available. This figure comes from an initial surplus exceeding 16.6 million, from which various already committed items have been deducted, such as projects underway and funds reserved for specific interventions (e.g., the renovation of the citizen service office BAZ facilities or the new section of the bidegorri in Araba Etorbidea).
Among the actions to be funded with this surplus are the expansion of the Santa Marina library (400,000 euros) and the Social Services offices (465,000 euros), the water network 'bypass' (2.5 million euros), the public elevators of Gorostiza (around two million euros), and the urbanization works of the Udala Goikoa neighborhood (1.2 million euros).