The Government is set to cut €391.3 million in funding allocated to housing under the Recovery and Resilience Plan (PRR), as part of a budget reprogramming to be presented in Brussels. The measure, announced by the Secretary of State for Planning and Regional Development, Hélder Reis, is driven by rising construction costs and the limited timeframe for project execution.
Despite the budget reduction, according to Jornal de Negócios, the Government assures that investments in affordable public housing will not be compromised, reaffirming that the 6,800 planned housing units will still be built. However, the funding source will be adjusted, potentially relying on alternative sources such as loans from the European Investment Bank (EIB).
The reprogramming is justified by delays in project implementation and increasing difficulties in meeting the PRR deadlines. According to Hélder Reis, the decision is not politically motivated but rather a pragmatic response to the complexities of large-scale construction projects and the challenges of securing adequate financing.
Beyond housing, the sectors of sustainable mobility and water management will also face significant funding cuts under the PRR. The Lisbon metro expansion will proceed in phases, while the Odivelas-Loures light rail project will be scrapped due to high costs. In the water management sector, projects such as the Algarve desalination plant and dams like Pomarão and Pisão have been excluded.
In: Idealista
