The contract for the project, budgeted at €108 million, was signed on Tuesday, 21 April, by the company, the project developer, and the contractor, the Portuguese-Spanish consortium formed by the companies Luságua, Aquapor and GS Inima, the developer stated in a press release.

The consortium of companies will be responsible for operating the project for three years following the completion of the works, according to a statement from Águas do Algarve.

Authorised works

According to the body responsible for the region’s multi-municipal water supply and sanitation system, the start of works was authorised by the Portuguese Environment Agency (APA), “after completing the assessment of the preliminary elements set out in the Environmental Compliance Decision for the Implementation Project (DCAPE), issued in November 2025.

The project’s viability is, however, “conditional upon compliance with a rigorous set of measures for mitigation, minimisation, monitoring and environmental compensation”, it states.

The infrastructure is part of the national strategy to strengthen water security and adapt to climate change, aiming to secure a new drinking water source for the Algarve, a region particularly vulnerable to drought.

Capacity

The Seawater Desalination Plant (EDAM) will initially have a capacity to produce 16 cubic hectometres of water per year, with the potential to expand to 24 cubic hectometres.

“This expansion will be crucial to ensuring public supply, supporting economic activities and reducing pressure on freshwater reserves, providing a robust and strategic alternative source,” the company states.

The process will utilise desalination technology and energy-efficient systems, including energy recovery, to reduce the environmental impact.

According to the developer, the project also includes measures to protect marine and terrestrial ecosystems, as well as actions to safeguard and monitor any archaeological, cultural or landscape findings during construction.

The Algarve desalination plant, the first seawater desalination plant for public supply on the Portuguese mainland, is part of the Algarve Regional Water Efficiency Plan, which falls under the Recovery and Resilience Plan (PRR).