The executive branch classifies this project on the Mondego River as a strategic national investment because it serves crucial functions: ensuring water supplies for local populations, generating and storing energy, and bolstering flood-control capacity in the Lower Mondego region.

Project’s importance

Speaking in Gouveia, the Minister of Environment and Energy, Maria da Graça Carvalho, highlighted the project's importance and noted that the business model aims to attract exclusively private investment, with cost estimates ranging from 400 to 500 million euros, depending on the final installed capacity.

Technical details

According to technical details presented by José Pimenta Machado, head of the Portuguese Environment Agency (APA), the future infrastructure will have a minimum capacity of 40 MW and a Full Storage Level of 300 meters.

The tender process sets a 270-day deadline for potential bidders to submit proposals, followed by a 60-month period to deliver the scope definition proposal and the corresponding environmental impact study, and 18 months to prepare the preliminary study.

Technical timeline

Although the APA’s indicative technical timeline points to a 12-year horizon with completion in 2038, the supervising authority advocates shortening the process to eight years, setting 2034 as the target date, provided all phases proceed without administrative or environmental setbacks.

The award model is based on selecting the most economically advantageous proposal, prioritising the highest financial return without setting a base price, and is enhanced by a guaranteed grid connection and compensation mechanisms linked to storage capacity.

No cost to public treasury

Maria da Graça Carvalho emphasised that the project would entail no cost to the public treasury and highlighted the importance of alignment between local populations and municipal leaders for its success.

Should the tender fail to attract bids, the State will not undertake the project directly, though it remains confident in strong private-sector interest in an initiative deemed crucial for water security and the energy valorisation of the national territory.