Financing Secured for Lisbon-Porto High-Speed Railway
Portugal has taken a decisive step towards modernising its transport infrastructure with the signing of a concession contract and the first tranche of financing for the Lisbon–Porto high-speed railway. This project, long in the making, marks the country’s largest infrastructure investment in decades and is set to transform mobility, connectivity, and sustainability in Portugal.
Infraestruturas de Portugal (IP), the state-owned rail network manager, signed a 30-year concession contract with Avan Norte–Gestão da Ferrovia de Alta Velocidade, a company established by the LusoLAV consortium. The agreement covers the design, construction, and maintenance of the Porto–Oiã section, which forms part of Phase 1 of the Lisbon–Porto line.
At the same time, the European Investment Bank (EIB) confirmed €875 million in project finance for the project, the first tranche of a €3 billion package approved in 2024. The signing took place at IP’s headquarters in Lisbon, underscoring the project’s strategic importance to both Portugal and the European Union.
The Role of the EIB and InvestEU
The EIB’s €875 million financing is not only a major financial milestone but also the largest single contract signed under InvestEU, the EU’s flagship programme designed to mobilise over €372 billion in investment by 2027. This programme is crucial in driving forward Europe’s climate, cohesion, and competitiveness goals.
EIB Group President Nadia Calviño emphasised the significance of the project: “The EIB is committed to support Portugal in connecting Lisbon and Porto with the high-speed train. This is a real game changer. 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 travelling time reduced from nearly three hours to slightly over one hour.”
The EIB has also signed an Implementing Agreement with IP, ensuring close coordination between both institutions and reinforcing the shared commitment to delivering this ambitious project.
National Consensus and Political Support
Portugal’s political leadership has rallied behind the project, recognising its national and regional benefits. Miguel Pinto Luz, Minister of Infrastructure and Housing, highlighted its significance: “High-speed rail lines, along with the new Lisbon Airport, are the largest projects that the country will undertake this century and are critical factors for Portugal’s economic growth. These are projects that enjoy broad national consensus. It is therefore crucial that the government takes a determined stance on high-speed rail and, more generally, on the importance of investment in the railways, in line with the Parliament and the will of the Portuguese people. For me, this is a great sign of democratic maturity.”
European leaders have also voiced their support. Teresa Ribera, European Commission Executive Vice-President for a Clean, Just and Competitive Transition, commented: “The Lisbon-Porto high-speed line is an investment that reflects Europe’s capacity to act in a moment that demands coherence and ambition. It demonstrates how infrastructure decisions are closely linked to our climate objectives, our territorial cohesion, and our competitiveness.”
Phase 1 – The Porto–Oiã Section
The Lisbon–Porto high-speed line is being rolled out in phases. Phase 1 spans 143 kilometres, connecting Porto-Campanhã to Soure in the Coimbra district. The first section, now under concession, covers the 71 kilometres between Porto-Campanhã and Oiã in Aveiro.
Avan Norte, comprised entirely of Portuguese construction firms, will be responsible for delivering this section under a 30-year Public-Private Partnership (PPP).
The consortium is led by the Mota-Engil Group, whose Chairman and CEO, Carlos Mota Santos, said: “For Avan Norte, participating in what will be the largest public investment of the century in Portugal and contributing to a truly transformative project for the country’s development is a source of pride. The project promotes territorial cohesion, sustainable mobility and initiates what it will be the future connection with the European high-speed network.”
Key elements of Phase 1 include:
- 71 km of new high-speed railway infrastructure
- A new underground station in Santo Ovídio (Vila Nova de Gaia)
- The adaptation of Porto’s Campanhã Station for high-speed services
- A new Douro River bridge
- Connecting links to the existing Northern Line near Canelas
- A traction power substation in Estarreja
Financing and Additional Support
The financing structure for this vast project is multifaceted. In addition to the EIB loan, partially backed by InvestEU, the project will benefit from:
- €900 million in additional funding from national and international financial institutions
- €480 million in European grant support under the Connecting Europe Facility (CEF)
- €150 million in co-financing from Infraestruturas de Portugal
This layered financing approach reflects the project’s strategic importance at national and European levels, ensuring its viability and long-term success.
Sustainability and Climate Impact
The Lisbon–Porto high-speed line is not just a transport project; it is a cornerstone of Portugal’s climate strategy. By reducing travel times from three hours to one hour and 15 minutes, the line is expected to serve around 10 million passengers annually. More importantly, it will generate significant reductions in transport-related emissions, advancing EU climate targets and promoting sustainable mobility.
Jean-Christophe Laloux, EIB Director General of Financing and Advisory Operations within the European Union, stated: “This is a transformative investment for Portugal and a milestone in our decades-long collaboration with the country. The new high-speed line will support sustainable mobility, strengthen territorial cohesion and contribute to the climate transition.”
Miguel Cruz, President of Infraestruturas de Portugal, echoed this view: “More than a historic moment, this is a commitment to the future. The signing of the concession and financing for the first section of the Lisbon–Porto high-speed line represents a decisive step towards the construction of a modern, efficient and sustainable railway network.”
A Step Towards European Connectivity
Once complete, the Lisbon–Porto line will not only reshape Portugal’s domestic mobility but also pave the way for future connections with the European high-speed rail network. The project positions Portugal as a key player in Europe’s integrated transport system, boosting competitiveness and territorial cohesion across the continent.
Looking Ahead
The Lisbon–Porto high-speed rail project symbolises more than just faster trains. It represents Portugal’s commitment to modern, sustainable infrastructure, supported by European solidarity and investment.
With construction now underway, the country stands on the cusp of a transport revolution that promises to reshape its economy, environment, and society.
