Municipalities Invited to Apply for EIB Funding to Rehabilitate 22 Priority Schools
The initial application phase is now officially open for municipal councils to secure financial support for the construction and rehabilitation of 22 public schools designated with a “very urgent” intervention level. This initiative is part of a broader agreement established with the National Association of Municipalities (ANMP) and is financed through a substantial accord with the European Investment Bank (EIB). The total financing package is valued at approximately one billion euros and is earmarked for the comprehensive modernization of public schools serving the 2nd and 3rd cycles of basic education, as well as secondary education.
These 22 schools were specifically identified under the 2023 Sectoral Commitment Agreement for the Financing of the Recovery/Rehabilitation Program. It is important to note that this group is distinct from the 99 educational institutions already receiving interventions through the Recovery and Resilience Plan (PRR), which has an allocation of €450 million, and also separate from projects funded by the Portugal 2030 operational programs. The overarching Schools Program, which was approved on December 22, 2023, outlines interventions for 451 schools in total, leveraging a diversified funding strategy that includes the PRR, the State Budget, regional programs, and the EIB loan.
The financial architecture of the EIB loan stipulates that it cannot account for more than 50% of the total cost of the Schools Program. However, for individual school projects, the EIB's contribution can be as high as 70% of the financing in the Lisbon region and up to 90% in other regions of the country. Critically, the financing for all eligible expenditures is provided on a 100% non-repayable grant basis. The minimum eligible cost for any single operation is set at €250,000. The program allows for the financing of investments that commenced on or after February 1, 2020, but excludes any projects that were already materially complete before the application was submitted.
Municipalities have until March 31, 2026, to submit their applications, with a limit of one application per school. The timeline anticipates that construction works will begin in the second half of the upcoming year, with a maximum execution timeframe of 48 months. A key eligibility requirement is that all proposed construction or rehabilitation projects must demonstrably contribute to the energy transition, placing a strong emphasis on sustainability and green building standards. The program also offers a pathway for schools that were initially slated for PRR funding but later terminated their contracts to now apply for EIB financing.
The scope of eligible expenses under the EIB loan is extensive. It covers all civil construction works, including new builds, expansions, and modernizations, as well as exterior landscaping within the school's perimeter. Furthermore, the funds can be used for the procurement of a wide range of equipment. This includes essential items like school furniture, didactic materials, IT and communication hardware, and sports equipment. The acquisition and installation of digital educational resources, software, and other tools designed to facilitate modern pedagogical practices are also eligible for funding.
The regional development and coordination commissions (CCDR) are tasked with responding to all applications within a 40-day period, which can be extended by an additional 15 days if necessary. Once a school is selected, it can receive an advance payment of 30% of the total incentive. Subsequent payments will be disbursed within 30 days following the presentation of validated invoices, ensuring a steady cash flow for the approved projects.
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