ADO Avanza president, Luís Fernando Lozano, said “this challenge is a first step in the defence of (the company’s) rights against an arbitrary act and a serious breach of the law”.

“Our company always acted with institutional respect and made important human, economic and technical investments. We are therefore concerned with the legal insecurity of foreign investment and the consequences this can have on the bilateral relations between Mexico and Portugal”, he added.

ADO said that the reversal of these concessions implied a loss of over €200 million.

The subconcession of these public transport companies was launched by the previous centre-right coalition government led by Passos Coelho (PSD/CDS-PP), which gave the operation of the capital’s metro and bus companies to Spanish company at the same time as it gave British National Express, via Spanish company, the Oporto bus company STCP, and the Oporto metro to French company Transdev.

However, nine days after taking office the new Socialist prime minister, António Costa (PS) ordered the process to be suspended “immediately”.