The impact of the construction crisis varied among companies, as revealed by recent data disclosed by the Ministry of Mobility and Public Works on 16 January.
Minister for Mobility and Public Works Yuriko Backes recently provided insight into the government’s spending during the preceding parliamentary term. She divulged the substantial sums disbursed between 2018 and 2023 to various construction companies for public projects. These funds likely proved instrumental in sustaining selected major companies during a period marked by a downturn in residential construction.
Among the beneficiaries of these contracts are well-established entities in the Luxembourg construction landscape. For example, Tralux S.a.r.l. and Felix Giorgetti S.a.r.l. alone accumulated over €300 million between 2018 and 2023.
And that is without mentioning the joint ventures between Giorgetti and Cimolai (€80 million) or Tralux and Demathieu Nord Construction (€62 million). These collaborations facilitated the execution of major projects during the specified period.
Tralux, for instance, undertook pivotal initiatives including the Micheville-Belval link, the construction of the Luxembourg National Library, the establishment of the Kirchberg funicular railway, as well as various railway line developments. The company also contributed to earthworks for the tram infrastructure.
Similarly, Felix Giorgetti’s portfolio encompasses endeavours such as the construction of the Luxembourg National Stadium, multiple P+R sites (including those in Cloche d’Or, Rodange, and Mersch), and the modernisation of the Findel airstrip. It has also been involved in the A3 lane-widening project since 2022.
It is worth noting that these two companies prominently feature among the top-ranking entities identified in the Ministry of Mobility and Public Works’ listing, holding positions in four of the top six slots.
Other well-known companies such as Karp-Kneip Constructions S.A., Paul Wagner & Fils S.a.r.l., and S+B Inbau S.a.r.l. are also listed.
In total, almost €800 million were paid to these few companies between 2018 and 2023 for public works.
The magnitude of these financial transactions highlights the comparatively favourable position enjoyed by these companies amidst the challenges posed by the construction crisis, contrasting with the struggles faced by other players in the market.
This observation was articulated by MP Marc Goergen from the Pirate Party in a parliamentary question dated 15 December 2023. It would appear that the figures have proved him right.
