Work can begin on the first high-speed railway system in Portugal after the project received backing from the European Investment Bank (EIB).
The bank announced its first grant of 875 million euros (just over $1 billion) last Tuesday.
Newsweek has contacted the Portuguese Institute for Mobility and Transport for comment on the update via email.
Why It Matters
Portugal’s authorization to begin work on its first high-speed railway marks a transformative investment in both national infrastructure and European connectivity. The project forms part of the European Union‘s goal to establish a continent-spanning network of high-speed railways intended to reduce travel times, increase mobility and promote sustainable transport.
With financial contributions from the EIB and support from the EU‘s InvestEU and Connecting Europe Facility programs, the line is set to drive economic growth and help the EU meet long-term climate and integration goals.
What To Know
Portugal is set to begin construction on its inaugural high-speed railway after the EIB released an initial 875 million euros in funding this week.
The approval followed the signing of a 30-year concession between Infraestruturas de Portugal (IP), the national rail network operator, and the Avan Norte consortium, a partnership of leading Portuguese engineering and construction companies.
The initial section under development is set to run 44 miles from Porto to Oiã, a town north of Coimbra and about a quarter of the way toward Lisbon. This is part of a larger 89-mile first phase connecting Porto-Campanhã to Soure.
The total EIB funding package amounts to 3 billion euros. The current phase is also supported by 900 million euros from financial institutions, 480 million euros in grants from the EU’s Connecting Europe Facility and additional national contributions from IP totaling 150 million euros.
Once completed, the high-speed service is forecast to reduce the journey between Portugal’s largest cities, Lisbon and Porto, from almost three hours to about one hour and 15 minutes.
The new rail network is projected to carry about 10 million passengers annually. Station upgrades, a new Douro River bridge and a modern underground station at Santo Ovídio in Vila Nova de Gaia are included in the scope of works.
What People Are Saying
Nadia Calviño, the president of the European Investment Bank Group, said during the financing announcement on July 29: “It is the first high-speed train that will be built in the country, and it is going to significantly improve the lives of people, who will see their traveling time reduced from nearly three hours to slightly over one hour.”
Miguel Cruz, the president of Infraestruturas de Portugal, said at the signing ceremony: “The signing of the concession and financing for the first section of the Lisbon–Porto high-speed line represents a decisive step toward the construction of a modern, efficient and sustainable railway network. This project will bring people and regions closer together, boost clean mobility and position Portugal as a more cohesive and competitive country.”
What Happens Next
Construction will soon commence on the Porto–Oiã segment, with the remainder of the corridor—ultimately joining Lisbon and Porto by high-speed rail—set to proceed in subsequent phases.
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