Como, Rapinese: asphalt prices rise by 40% due to the war (cross-border guide)

Di Valerie Linc · Published on

The mayor of Como, Alessandro Rapinese, faces a tough decision regarding the use of the 5 million euro plan for road resurfacing, as costs have surged by 40% due to the conflict in Iran.

Contesto

TL;DR - Como faces 40% cost rise in paving due to war in Iran. - 5M€ investment plan at risk; key roads like via Carloni affected. - Asphalt cost up from 70-80€ to 110-120€ per ton. - Municipalities in Ticino also hit by 25-30% cost increases. ## Key facts - Cost Increase: 40% increase in paving costs due to war in Iran. - Investment Plan: 5 million euro investment plan for city street renovation. - Asphalt Cost: Cost of one ton of asphalt increased from 70-80€ to 110-120€. - Project Impact: 10,000 tons project cost increase of 300,000-400,000€. - Budget Reduction: Budget covers 3,600 meters instead of 4,000 meters. - Ticino Impact: Municipalities like Lugano and Bellinzona face 25-30% cost increases. - Regulation: 2021 regulation requires 2% of municipal budget for infrastructure upgrades. - Legal Framework: EU Directive 2014/24/EU allows contract modifications for force majeure. Como is currently dealing with a 40% increase in costs for paving works, a direct consequence of international tensions related to the war in Iran, which has impacted commodity markets. Mayor Alessandro Rapinese announced that the 5 million euro investment plan, intended to renovate and improve city streets, is now at a critical juncture due to this sharp rise in prices. The demand to pave key roads, such as via Carloni, Como's main artery, has sparked intense debate among the administration and residents, especially considering possible financial limitations. > «Material prices have skyrocketed, suppliers have already updated their price lists,» declared Mayor Rapinese, highlighting how a 30-40% increase in raw material costs has already altered expenditure forecasts. In concrete numbers, for example: the cost of one ton of asphalt, which in 2022 ranged around 70-80 euros, now can exceed...

Dettagli operativi

Legally, Como’s municipality faces an unforeseen increase in costs linked to the international crisis, especially concerning raw materials like asphalt. Italian regulations, referencing Legislative Decree 50/2016 (Public Contracts Code), and EU directives allow for emergency measures to address such increases, provided transparency and accountability procedures are followed. Specifically, the EU public procurement regulation (Directive 2014/24/EU) permits modifications to ongoing contracts in cases of force majeure, such as the conflict in Ukraine, which has led to a 40% rise in asphalt prices over recent months. > The revision of the municipal budget is the key step. In the coming months, the City Council will need to discuss and approve any budget adjustments, possibly resorting to extraordinary funds or loans. For example: if the initial plan included 1,000 tons of asphalt at about 350 euros per ton, today the cost is around 490 euros, adding approximately 140,000 euros for this item alone. This increase directly impacts work planning. For instance, a 10 km paving project requiring 2,000 tons of asphalt could now cost around 980,000 euros instead of the original 700,000, necessitating a project revision or a budget increase. In Ticino municipalities like Lugano or Bellinzona, similar scenarios are unfolding with cost variations between 30% and 45%, affecting road maintenance and urban development plans. Cantonal regulations, while more flexible than Italian law, still require careful budget review and adherence to transparency procedures, especially regarding procurement processes and justification of cost changes. To manage this situation, an operational checklist could include: - Assessing the magnitude of cost increases through market analysis and supplier upda...

Punti chiave

Como, Rapinese: asphalt prices increase by 40% due to the war For Como residents and businesses, managing infrastructure and public works today presents a complex challenge, amplified by rising raw material costs, especially asphalt, which has surged by 40% compared to the previous year. This variation, linked to the international conflict and energy market tensions, forces precise strategic choices among Lombard municipalities and cross-border operators in Canton Ticino, where construction firms and road maintenance are already under pressure. > Rapinese emphasizes: “Projects are ready, but the new price list has made everything more complicated.” Based on this, administrations must evaluate whether to proceed immediately with maintenance works, bearing higher costs, or wait, risking deterioration of infrastructure quality and the need for emergency repairs later. For example, Como estimates that a 5 km asphalt paving project could jump from 300,000 euros to around 420,000 euros due to price increases, complicating budget adherence. For a practical comparison, consider Mendrisio, which has already postponed some planned paving works for 2023, risking longer-term deterioration and higher future expenses. The choice to invest now or delay also depends on the possibility of obtaining extraordinary funding, such as European grants, or renegotiating contracts with suppliers, often subject to price revision clauses. For an accurate assessment, it is recommended to consult updated municipal budget regulations, such as the Como City Council resolution of February 15, 2023, which approved a 2 million euro emergency fund for infrastructure projects. Additionally, monitoring price fluctuations through digital tools like public expenditure calculators and preparing an operatio...

Punti chiave

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Frequently Asked Questions
How does an increase in costs for asphalt work in Switzerland occur?
Cost increases for asphalt work in Switzerland are caused by international tensions related to the war in Iran, which affect the commodity markets.
How to manage the variable costs for asphalt work in an international instability context for a frontier worker operating between Switzerland and Italy?
A frontier can mitigate the risks through the diversification of suppliers, the optimization of contracts with price adjustment clauses, and the exploration of regional incentives both in Switzerland and in Italy.
What are the implications of international tensions on contract contracts between Switzerland and Italy?
International tensions, such as the conflict in Ukraine, allow to change public contracts in the presence of causes of force majeure, according to European and Italian law, allowing the adjustment of costs and timing without incurring sanctions.

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