The project is financed by the European Investment Bank (EIB) under what has become known as the Junker Plan, after the European Investment Plan was launched by the head of the European Commission, Jean-Claude Junker. According to an EC representative in Portugal, the investment will go towards Lisbon’s “urban regeneration and to support its growth and competitiveness.”
A loan of €250 million has been approved for Lisbon, part of which will be used for improving drainage in the city.
The Plan was unveiled in the presence of EIB representative Werner Hoyer, Portuguese Prime Minister António Costa, and European Commissioner Carlos Moedas and also included the signing of an agreement between Lisbon Council and the European Investment Bank.
Speaking at the ceremony on Monday, Lisbon Mayor Fernando Medina said the planned €250-million loan from the European Investment Bank to Lisbon will make it possible to start the “construction of the city’s future” in areas such as employment and
“Lisbon is today a modern, open, cosmopolitan city that in recent years has undergone an incredible process of development”, he said at the event to unveil the City of Lisbon Investment Plan 2016-2020.
“But what this programme means for the city of Lisbon is that we are laying down the first central element for us to continue the construction of the future.”
In his speech, the mayor cited the “confidence” represented by the plan.
“What is at issue is (…) coupling the vision we have for the city of Lisbon and the financial instruments so that we can realise it”, he said.
The plan, which is also known as LX XXI, aims to expand the city’s school facilities (with 37 new schools and seven new crèches), cultural venues and civil defence forces, and to improve public and green spaces (with 26 new gardens), social housing (with 400 new homes and interventions in 26 existing neighbourhoods), improvements to the road network (helped by the fact that the bus and train company Carris is coming under municipal control) and preparing the city to cope with the impact of climate change (with the execution of the General Drainage Plan).
In all, a total of €520 million in capital spending is planned, with half of that to come from the city’s own funds and virtually all the rest from the EIB.
At Monday’s ceremony the contract for the first tranche of €100 million was signed, as part of the €250 million total under the European Union’s Investment Plan for
Lisbon is the first EU municipality to benefit directly from this plan.