Government to Revoke PT2030 Funding for Projects Not Started Within 90 Days
The Minister of Economy and Cohesion, Manuel Castro Almeida, has announced in Parliament that companies and municipalities with projects approved for funding under the Portugal 2030 program will risk losing their financial support if work does not commence within a 90-day period. This new measure is part of a government effort to accelerate the program's execution, which currently stands at a low 10%. The pressure to increase this rate is mounting as 2025 is the first year the European Union's 'guillotine rule' will apply, potentially forcing Portugal to return unused funds to Brussels.
During his address, Minister Castro Almeida stated the government's firm position. “We are going to create rules so that those who do not comply with the contract will be notified if they do not start the project in 90 days. We will revoke the support,” he declared. He criticized what he termed a “bad practice, of the beneficiaries being little diligent in initiating the works.” While beneficiaries will have an opportunity to justify delays, the support will be withdrawn if the reasons provided are not deemed valid. This policy is not without precedent, as similar 'cleaning operations' were used in past community support frameworks to reallocate unexecuted funds.
The government is also undertaking a wider reprogramming of the PT2030 framework to align with new EU priorities announced in April, which could allow Portugal to access higher advance payment rates of up to 20% for certain investments. These priority areas include competitiveness, defense, affordable and sustainable housing, water resilience, and the energy transition. “If Portugal reforms these new priorities, we will have execution advantages with pre-financing for these areas that count for the execution of the N+3 rule,” Castro Almeida explained to the deputies, referencing the EU's decommitment rule.
This strategic shift has direct implications for several major projects, including some that were previously dropped from the national Recovery and Resilience Plan (PRR). The minister noted that the 'Sustentável 2030' program might now finance parts of the Pisão dam, the Pomarão water intake, and the Algarve desalination plant. Furthermore, the reprogramming aims to make all drainage projects costing over five million euros eligible for PT2030 funding. This change is expected to provide budgetary relief for municipalities such as Lisbon, Oeiras, and several in the Algarve, potentially accelerating key infrastructure works.
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The PT2030 program has been beset by delays since its inception, a situation exacerbated by the simultaneous need to finalize the preceding PT2020 program and execute the PRR. The minister acknowledged these challenges, noting that “thousands of applications were submitted and there was no information system to process them, which caused several months of delay.” In an effort to improve efficiency, Castro Almeida also reaffirmed the government's commitment to process new applications within a 60-day window, stating, “We are being faster in the analysis of applications.”
The policy's objective is to ensure that approved funds are actively used to stimulate the economy and complete vital projects. The focus on areas like affordable housing and major infrastructure in key economic hubs like Lisbon and the Algarve highlights the government's strategy to use these funds to address pressing national needs. The strict 90-day deadline serves as a clear imperative for all beneficiaries to ensure their projects are shovel-ready and to proceed without delay.
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