Search EN menu en EIB GROUP CLIENT PORTAL
Search
Results
Top 5 search results See all results Advanced search
Top searches
Most visited pages
Reference: 20230897
Release date: 19 March 2025

Promoter – Financial Intermediary

REPUBLICA PORTUGUESA

Location

Description

The project will finance the construction and refurbishment of about 12.000 affordable housing units (mostly new construction) across Portugal.

Additionality and Impact

The Project consists of the construction and refurbishment of affordable housing units across Portugal. It will also contribute to urban regeneration and transformation of neighbourhoods to make them more sustainable.


The Project fosters social inclusion as well as a more equitable access to housing. It will generate positive externalities through improved provision of housing facilities and attractiveness of the built environment.


The Project is in line with the Bank's Urban Lending Review in accordance with the provisions of the EU Urban Agenda, the 2020 Leipzig Charter for sustainable urban development, the EU2020 Strategy for smart, sustainable and inclusive growth, and the EU Green Deal. The operation is aligned with the EU Energy Performance of Building Directive ("EPBD") and the Energy Efficiency Directive ("EED").


The Project is expected to contribute to Climate Action and Environmental Sustainability. The investments will also support the strengthening of the EU's economic, social and territorial cohesion. Therefore, the Project is eligible under Article 309 of the TFEU point (a) projects for developing less-developed regions and point (c) common interest.


The Project addresses a number of market failures in particular the lack of available housing supply as the market does not sufficiently cater for the demand of low-income and middle-income people. By providing long maturity loan terms, the Bank enables for a greater number of housing units to be built more rapidly, thus helping relieve the pressure faced by this sector in these difficult times.


The Project also addresses sub-optimal investment flows into energy efficient and resilient new buildings, as a result of non-internalized positive externalities from energy savings and greenhouse gas ("GHG") emission reductions.


The Bank's financial contribution to the Project is very good thanks to conditions more favourable than market alternatives (lower pricing, longer tenor and disbursement periods, etc.). The value added provided by the EIB is even more tangible under the current market volatility, impacted by the ongoing geopolitical issues.

Objectives

This operation is part of the Affordable Programme (PAA), a national public programme designed to finance affordable housing and establish a long-term housing stock at below-market rents. Through this programme, the Government aims to address the housing needs of families whose income levels do not permit them to access market-rate.

Sector(s)

Proposed EIB finance (Approximate amount)

EUR 1340 million

Total cost (Approximate amount)

EUR 1789 million

Environmental aspects

The promoter is deemed as having the adequate capacity to ensure that the project is implemented in line with the relevant EU Directives: Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, Strategic Environmental Assessment (SEA) Directive 2001/42/EC, EU Habitats Directive 92/43/EEC, Birds Directive 2009/147/EC, and Water Framework Directive (WFD) 2000/60/EC. Furthermore, for new and refurbished buildings, the Promoter is also deemed capable of ensuring the project is implemented in line with EU Directive on Energy Performance of Buildings.

Procurement

The promoter shall ensure that contracts for implementation of the Project will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/24/EU as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

Status

Signed - 4/09/2025

Milestone
Under appraisal
Approved
Signed
10 June 2025
4 September 2025

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Related tags

Portugal Urban development