Developers are seeking at least €8.3 million per year in compensation until the end of the legal action
The municipal council of Silves has filed its defence against a lawsuit brought by real estate developers linked to the Millennium BCP Group. The conflict centres around the suspension of a huge real estate project at Praia Grande, which includes hotels, tourist resorts, commercial spaces, and an 18-hole golf course.
The developers are contesting the unanimous decision made by Silves council on March 18, 2024, to halt construction permits for the project approved in 2012 until it receives certain environmental go-aheads from Portugal’s Institute of Nature and Forest Conservation (ICNF).
The decision was made to ensure compliance with environmental regulations, the council explains in a statement to the press, specifically concerning the protection of several endangered plant species, including the ‘Linaria Algarviana’, a native species protected under both national and EU law.
As a result, the developers have taken to court to demand compensation totalling “at least €8.3 million” each year from the date of the council’s decision until the conclusion of the ongoing legal process, as they lament that the municipal decision has delayed the launch of the project.
However, the council highlights that the developers have yet to prove to ICNF that their project meets the “environmental requirements of conservation and protection of Linaria Algarviana” and have failed to obtain “any exceptional licence for the destruction of large numbers of legally protected species” – two conditions which, it says, prevent the developers from carrying out any construction at Praia Grande.
“In fact, the importance and relevance of the natural values and biodiversity present at Praia Grande and Lagoa dos Salgados recently led the Portuguese State to manifest its intention to create a natural reserve for this area,” Silves council points out.
“As much as this may displease the developers of the Praia Grande real estate project, the council’s decision which is being legally contested not only safeguards the public environmental interest, but is legally sound,” it adds.
The council also lambasts the lawsuit as an attempt to intimidate local officials into reversing their stance, noting that any potential damages they seek through legal means will be directed to local social and environmental organisations.
Despite the legal pressures, the local council adds that it remains steadfast in its commitment to safeguarding the region’s natural resources and ensuring the sustainable development of its territory.
