Storm recovery costs exceed 3 billion euros under recovery plan

Portugal's territorial cohesion minister, Manuel Castro Almeida, told parliament that recovery from early-year storms has already absorbed 3.03 billion euros under the Portugal Transformation, Recovery and Resilience programme. The funds include non-repayable grants and state credit lines.

For next year, the programme foresees 970 million euros in investment. Of this, 266 million euros is inscribed in the 2027 state budget under the programme, with 502 million euros from the Environmental Fund and 200 million euros from Portugal 2030.

“Many roads, many municipal facilities were damaged and a period is under way for municipalities to submit their applications, so that we can share these applications and we think we will do it at 100 percent.”

Municipal infrastructure and equipment are now the focus of recovery efforts. Many roads and municipal facilities were damaged, and municipalities are submitting applications that the government aims to process at full rate.

Sixty percent of municipal infrastructure funding will come as non-repayable grants through the Municipal Emergency Fund, while the remaining 40 percent will be covered by a credit line available to municipalities.

State transfers to municipalities will rise by 6 percent in the 2027 budget, from 4.41 billion euros to 4.676 billion euros. Over the last three years, transfers have grown 21 percent, while accumulated inflation was 7 percent, representing 14 percent real growth.

The government will extend at least until 31 December the deadline for municipalities to apply for Municipal Emergency Fund aid. The original deadline was 30 November, but several municipalities warned that it was too tight.

State support cannot exceed 60 percent of total eligible costs. Municipalities, parishes and intermunicipal entities in affected areas may apply through regional development commissions, and may also use a credit line being designed with the European Investment Bank to cover the remaining 40 percent of losses.