20% of RRP projects deemed to be behind schedule and in a “critical situation”

The execution of many projects that have received European Union funding through Portugal’s Recovery and Resilience Plan (RRP) are in a “critical state” with 20% of the projects behind schedule.

Less than a third of the investments analysed by the National Monitoring Commission of the RRP (CNA-PRR) have been completed or are in line with planning, while a fifth are seen as being in a critical situation in the face of delays as the deadlines loom for their implementation, details the Commission’s report published on Wednesday. Regarding these at risk investments, the leap from last year (8%) is glaringly evident despite the fact that many of the projects have been reprogrammed and rescheduled.

The report highlights nine projects that have been concluded from the 119 analysed, of which 28 are “on track” making up 8% and 24% respectively.

And the number of invested projects in a critical situation has gone from nine to 24, or 8% to 20%. Part of this increase is offset because the investments “in a critical situation” have fallen significantly from 31 to 16, but those viewed as needing “monitoring and supervision” have leaped from 27 to 42.

Breaking it down, investments related to health such as improving response times in the primary care network or the national network of ongoing and palliative care went from a ‘worrying’ to a ‘critical’ situation, as well as the programme to support access to housing or the public stock of affordable housing. In the same vein are investments related to culture or the areas of business centres and fuel management.

It has been recommended that a RRP National Evaluation Agency should be set up to supervise and monitor actual and financial compliance to the milestones and targets as well as a systematic evaluation of the impact of the investments made.

Nevertheless, Portugal’s Recovery and Resilience Plan (RRP) is generally considered to be progressing well and has received positive assessments from the European Commission. The plan is designed to help Portugal recover from the COVID-19 pandemic and build resilience to future economic shocks. Portugal has received pre-financing and multiple subsequent payments from the EU, demonstrating progress in implementing the plan.

The plan includes a variety of reforms and investments, such as those related to housing, green transport, fire prevention, business digitalization, and modernization of tax systems. The plan is also expected to drive positive changes for citizens and businesses in various areas, including access to housing and support for companies.
On November 25, 2024 Portugal submitted and had its fifth payment request (net of pre-financing, totaling €2.9Bn) positively assessed, indicating satisfactory completion of milestones and targets.