Government expects 40% execution rate on Portugal RRP for 2024

Portugal’s government expects that 2024 will see a 40% execution rate for its Recovery and Resilience Plan, which means that 40% of targets for EU-funded investments in public works, digitalisation, modernisation and economic projects will have been validated and met by this year.

Last year saw an execution rate of 32% although projects still have to be ticked off the list by the European Commission as completed on time.

With the deadline for the execution rate slated for the end of 2026, the government led by Luís Montenegro said its goal was to meet the EU deadlines and present two requests for the monies to be paid to the Portuguese government to be used for the various projects submitted according to the terms of the Portugal RRP.

The government submitted a fifth request for investment in July 2024 and for the sixth tranche in November, 2024.

The fifth request has already received a positive preliminary evaluation from the EC confirming the fulfillment of 42 commitments (27 benchmarks and 15 targets), raising the execution rate to 32% from 23%.

Now the sixth request is awaiting validation which could take around two months.

It means that Portugal will have succeeded in getting 147 targets signed off by December 31, 2024 for projects that include the modernisation of the public administration, the creation of a temporary accommodation fund, the acquisition of new zero emission buses (electric or hydrogen) for public transport use, the creation of a National Observatory on Energy Poverty – all of which are regarding commitments completed in 2024.

Other projects include the Lisbon Metro extension lines, the purchase of two electric ferries for use in the Azores, the signing of a contract for a multi-purpose research vessel for Madeira, and the construction of a light railway between Odivelas and Loures, among others.