With loss, lawsuits in place cannot be overridden as government previously planned
The bitterly-contested project for a massive desalination plant set back from the coast in Albufeira has been dropped (along with the dam project in Pisões and the Pomarão water intake) from the PRR schedule*.
It is not a ‘win’ for the environmental lobby – vigorously backed by local fishermen – because the narrative remains that the plant will be built, only with national funding. But it is a boost for all those behind current lawsuits, as these cannot now be ‘swept away’ on the premise that PRR projects’ time limits take precedence.
Fishermen only last week questioned this situation, stressing the desalination plant would deliver the final blow to coastal fishing. President of Quarteira fishing association Quarpesca, Hugo Martins, was not the first to query whether the government’s ‘decree’ that lawsuits could not be allowed to hold up the project was even constitutional. Now at least, that cannot be the case, or the argument – and thus there is a chink of hope that the project may never see the light of day. The truth remains however that contracts have been signed, and even landowners fighting the expropriation of their properties fear they could be waging this battle for many years to come.
Government portal ambienteonline.pt carries confirmation today of projects dropped, stressing “this represents a loss of more than 80% of the funds allocated to water management under the PRR. On the other hand, the hydrogen and renewables sector (C14) will benefit from a significant increase in funding”.
Confusingly, ambienteonline maintains that the Pomarão water intake “keeps its funding”, albeit it is still dependent on the decision on the environmental compliance of the execution project (DCAPE). According to Pedro Dominguinhos (president of the national commission for the accompaniment of the PRR) ‘the public tender was launched last December, with a deadline of 460 days. If these processes run smoothly and there are bids compatible with the tender conditions, it will be possible to complete the contract by June 2026.” Thus it is unclear whether ambiente online has got it wrong, or the national press. Whatever the case, the water intake project has its own environmental battle to contend with. And none of it is ‘plain-sailing’: Dominguinhos explained to ambienteonline’ that the implementation of the PRR “has been confronted with various difficulties, such as lengthy bureaucratic processes, strict environmental requirements, legislative obstacles and high costs for equipment and materials”.
Analysing environmental opinions and declarations can take up to two years and “imposes a series of mitigation measures that require projects to be revised, affecting implementation deadlines” – and the increase in overall costs, coupled with the scarcity of essential components further aggravates the viability of projects.
Another significant obstacle is the slowness in analysing and approving applications for funding, as is the case with renewable energy communities.
“To mitigate these problems, the government is considering various initiatives, such as extending the deadlines for mobilising agendas until June 2026, reallocating funds within consortia and allowing projects to be partially funded, thus avoiding definitive cancellations. The reinstatement of VAT for the entities covered and the speeding up of licensing processes are also among the measures proposed, with a view to preserving part of the investments at risk”, says the website.
Secretary of State for Planning and Regional Development, Hélder Reis, has told parliament that despite the efforts made to meet the objectives of the PRR, there are factors outside the government’s control that may lead to the need for “a new reprogramming. At the moment, financial execution stands at around 29%, with €6.5 billion already spent and €15.9 billion still to be executed. The PRR will maintain its total amount of €22.2 billion, however, some projects will have to seek alternative funding, through PT2030, the European Investment Bank and/ or the State Budget”.
Reis stressed that “the level of demand to finish in the time remaining is high”, recognising that inflation has had a considerable impact on the execution of the PRR. A low take-up of tenders, due to inadequate prices, has also been a difficulty. “The scale of what we don’t control is greater than what we do control,” he admitted.
*PRR stands for Plan for Recovery and Resilience, funded by Brussels, but given strict time limits on the use of over €22 billion in funding.
