Portugal's PRR Reprogramming Cuts Key Projects: What You Need to Know

Major Cuts in Portugal's Recovery Plan

The Portuguese Government has announced significant changes to the Recovery and Resilience Plan (PRR), which will reduce the number of affordable housing projects financed under this initiative. The reprogramming is part of the plan that will be submitted to Brussels and is still in the process of completion. The government has opted to maintain the total budget of €22.2 billion, but due to the execution deadline of June 2026, several projects are being removed from the PRR, including:

• The Violet Line of the Lisbon Metro
• A section of the Red Line of the Lisbon Metro
• The Pisão Dam, which has yet to commence construction
• The Algarve desalination plant

Funding Boost for Health and Innovation

During a presentation to parliament, Secretary of State for Regional Development, Hélder Reis, confirmed that the reprogramming will include increased funding for healthcare equipment, scientific initiatives, and the creation of a new financial tool aimed at supporting business innovation. While the reprogramming is delayed, Reis assured that the final document would be submitted by Sunday, emphasizing the urgency of the timeline.

Commitment to Essential Projects

Reis reiterated the government’s commitment to executing all structural projects for the country, although they will not be financed through the PRR. Alternative financing will come from Portugal 2030, loans from the European Investment Bank, and the State Budget. He acknowledged the challenges in meeting these commitments, citing factors beyond their control.

Phased Construction Plans

Regarding the possibility of phasing projects, Reis noted that while some works could be partially funded by the PRR and other sources, the Pisão Dam project faced legal hurdles that hindered progress. However, the Red Line of the Lisbon Metro may still utilize this phased funding approach, freeing up €72 million from the PRR. Conversely, the Violet Line, connecting Odivelas and Loures, will be completely removed from the PRR due to inflated costs in public bidding, amounting to €390 million. Overall, these changes will effectively reduce the sustainable mobility budget by €462 million, but will introduce €66.4 million for the digitalization of rail transport, including technological upgrades.

The news is still developing.