PORTUGAL IS not in a fit state to support long-promised public investment construction projects according to PSD opposition leader Manuela Ferreira Leite.
However, both the Prime Minister José Sócrates and Minister of Finance, Fernando Teixeira dos Santos, say that projects such as the TGV, the new Lisbon International Airport and new roads in the north and south of the country are vital for the economy.
Finance Minister Fernando Teixeira dos Santos reacted to sharp criticisms from PSD Deputy Duarte Pacheco, who echoing Manuela Ferreira Leite’s recent statements that the country did not have “money for anything” also questioned the huge government investment costs involved.
But what are the projects and what proportion of their costs is footed by the Portuguese tax payer?
TGV
The Lisbon-Porto-Vigo and Madrid-Lisbon TGV lines will be financed by the Portuguese state to the tune of 158 million euros a year for 40 years, starting in 2010. Yet the Secretary of State for Transport, Ana Paula Vitorino, says that the real cost could climb to 200 million euros a year if alterations to the conventional network are taken into consideration.
The TGV High Speed Project will cost a hefty 8.9 billion euros, of which the Madrid-Lisbon line will cost three billion euros and the Porto-Lisbon stretch 4.7 billion euros, and 800 million for Porto-Vigo.
Some 19 per cent of the project is to be financed from European Union community funds and 45 per cent from the projected receipts that the actual project should generate.
Both Portuguese and Spanish tax payers will be called upon to finance the remaining 36 per cent of the total cost, working out at 158 million euros a year.
International airport
As to the new Lisbon International Airport, comparative studies presented in January to the Portuguese National Civil Engineering Laboratory (LNEC) appointed to cost in the region of 4.926 billion euros for the airport at Alcochete – 260 million euros less than the alternative site at Ota.
Despite delays in preparing the launch of the public-private competitive tendering bid competition, the new airport is still on schedule for completion and operation in 2017.
The project is linked to the privatisation of the state-held airports company ANA which runs most of Portugal’s airports.
Road plan
With regards to Portugal’s National Road Plan (Plano Rodoviário Nacional – PRN), Mário Lino has already publicly announced the government’s intentions to build 1219 kilometres of new roads by 2012 as well as upgrading existing infrastructure.
Eleven public-private partnership concessions to build and run the roads with an average state concession of 30 years, with private investment expected to be set at around four billion euros.
Since 2007 nine of the 11 tender bids have been launched for road projects for the EN125 in the Algarve between Vila do Bispo and Vila Real de Santo António, and the construction of the Marão Tunnel on the IP4, as well as projects in the Alto Alentejo on the IP2 between Fratel and Estremoz.
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