Portugal Breaks Ground on Porto–Oiã High‑Speed Rail with €875 Million EIB Backing

Portugal Breaks Ground on Porto–Oiã High‑Speed Rail with €875 Million EIB Backing

(IN BRIEF) Infraestruturas de Portugal and the Avan Norte consortium have inked a 30‑year concession to deliver the Porto–Oiã section of the Lisbon–Porto high‑speed railway, marking the kickoff of Phase 1. The European Investment Bank will underwrite €875 million of the total €3 billion financing approved in 2024, backed by the InvestEU programme; further support comes from national and international financiers (€900 million), EU grants (€480 million via CEF), and IP’s own €150 million co‑investment. This project—which includes 71 km of new track, station upgrades in Porto and Vila Nova de Gaia, a new Douro River bridge, and power infrastructure—promises to reduce travel time between the capital and the country’s second city from three hours to 1 h 15 m, serve 10 million passengers annually, and significantly cut transport emissions. Portuguese and EU leaders at the signing highlighted its role in enhancing competitiveness, territorial cohesion, and the continent’s climate and mobility objectives.

(PRESS RELEASE) LUXEMBOURG, 30-Jul-2025 — /EuropaWire/ — Infraestruturas de Portugal (IP) has formalized a 30-year public-private partnership with Avan Norte–Gestão da Ferrovia de Alta Velocidade, a consortium led by LusoLAV, to design, build, and maintain the Porto–Oiã segment of the forthcoming Lisbon–Porto high-speed rail corridor. In parallel, the European Investment Bank (EIB) has committed an initial €875 million tranche—part of a broader €3 billion package approved in 2024—to finance this crucial 71 km stretch.

Today’s joint signing ceremony at IP’s headquarters also saw the EIB and IP enter into an Implementing Agreement, reinforcing their collaboration and mutual dedication to delivering this transformative link. Once complete, the new line will slash journey times between Lisbon and Porto from roughly three hours to just one hour and fifteen minutes, catering to an estimated 10 million passengers annually and driving down transport-related emissions in line with EU climate objectives.

This milestone represents the largest infrastructure investment in Portugal in decades. By bolstering capacity and efficiency on the nation’s principal north–south corridor, the project will enhance both domestic and cross‑border connectivity and foster regional cohesion. Backed by InvestEU, the financing package is the single largest contract signed under the EU’s flagship investment programme, which aims to mobilize over €372 billion by 2027. Additional funding for the Porto–Oiã phase includes €900 million from various financial institutions, €480 million in Connecting Europe Facility grants, and €150 million in co‑financing from IP.

Key dignitaries underscored the project’s significance: EIB Group President Nadia Calviño hailed it as a “game changer” that will revolutionize travel in Portugal; Infrastructure and Housing Minister Miguel Pinto Luz emphasized its vital role in national economic growth and democratic maturity; European Commission Executive Vice‑President Teresa Ribera linked it to Europe’s climate and cohesion ambitions; and Jean‑Christophe Laloux, EIB Director General for EU Financing, highlighted its contribution to sustainable mobility. IP President Miguel Cruz and Avan Norte representative Carlos Mota Santos celebrated the venture as a landmark commitment to Portugal’s future and a testament to domestic industry expertise.

Background information  

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund, signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

In Portugal, in 2024, the EIB Group signed new financing worth €2.1 billion for high-impact projects contributing to the country green and digital transition, economic growth, competitiveness and better services for their people.

High-quality, up-to-date photos of our headquarters for media use are available here.

InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by mobilising substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof the multitude of EU financial instruments available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that invest in projects, leveraging on the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increasing their risk-bearing capacity and mobilising at least €372 billion in additional investment.

Infraestruturas de Portugal

Infraestruturas de Portugal is responsible for the design, planning, construction, financing, maintenance, operation, refurbishment, expansion and modernisation of national road and rail networks, including traffic control and management. IP is also responsible for the design, construction, operation and maintenance, under a concession agreement, with the option of sub-concession, of the submarine electronic communications cable system between mainland Portugal and the archipelagos of the Azores and Madeira. Its activities are geared towards economic, social and environmental sustainability.

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André Milheiro
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SOURCE: European Investment Bank