Portugal Signs Concession and First Tranche of Financing for New Lisbon-Porto High-Speed Line

Strategic Insights -

Portugal is taking a significant step towards modernizing its transportation infrastructure as it signs a 30-year concession contract for the construction and maintenance of the Porto-Oia section of the Lisbon-Porto high-speed railway. The European Investment Bank (EIB) has approved a EUR3 billion financing package to support the construction of this strategic infrastructure, with the first EUR875 million tranche being announced today. This high-speed rail line will reduce travel time between Lisbon and Porto from approximately 3 hours to 1 hour 15 minutes, serving around 10 million passengers per year.

Key Takeaways:

  • The Lisbon-Porto high-speed line is a transformative investment for Portugal, promoting sustainable mobility, territorial cohesion, and climate transition.
  • The project will be implemented as a Public-Private Partnership (PPP) for a concession period of 30 years, with Avan Norte responsible for the design, construction, and maintenance of the Porto-Oia section.
  • The high-speed rail line will cover a total of 143 kilometres, linking Porto-Campanha to Soure (Coimbra district), with the first section connecting Porto-Campanha and Oia (71 km).
  • The EIB financing is backed by InvestEU, the EU flagship programme to mobilise over EUR372 billion in additional investment from 2021 to 2027.
  • The project will benefit from a total of EUR3.75 billion in funding, including EUR900 million in additional funding secured from national and international financial institutions, and EUR480 million in European grant support under the Connecting Europe Facility (CEF).
  • The EIB Group signed nearly EUR89 billion in new financing for over 900 high-impact projects in 2024, including EUR2.1 billion for high-impact projects contributing to Portugal's green and digital transition.
  • The agreement marks a decisive step towards the construction of a modern, efficient, and sustainable railway network in Portugal.

Statistics:

  • EUR875 million: The first tranche of EIB financing for the Lisbon-Porto high-speed line.
  • EUR3 billion: Total financing package approved by the EIB to support the construction of the Lisbon-Porto high-speed line.
  • 143 km: Total length of the Lisbon-Porto high-speed line.
  • 71 km: Length of the first section of the line, connecting Porto-Campanha and Oia.
  • 10 million passengers: Estimated number of passengers per year on the high-speed rail line.
  • EUR372 billion: Total investment mobilised by the EU's flagship program, InvestEU.
  • 2024: Year in which the EIB approved the EUR3 billion financing package for the Lisbon-Porto high-speed line.

Sources:

  • European Investment Bank (EIB)
  • Infraestruturas de Portugal (IP)
  • InvestEU program
  • European Commission Executive Vice-President for a Clean, Just and Competitive Transition, Teresa Ribera