Portugal will upgrade or build more than 50,000 social housing units nationwide under a €1.5 billion loan agreed with the European Investment Bank.
An initial €500 million tranche has been signed, with the financing linked to investments under Portugal’s Local Housing Strategies, the EIB said in a release on Monday.
It added that the funding supports a public investment programme focused on social housing, including upgrades to the quality, safety and accessibility of homes.
The work will also target the energy performance of residential buildings.
Portugal’s Minister of Infrastructure and Housing Miguel Pinto Luz said the loan would help municipalities move forward with housing projects that were identified locally but could not be fully funded under the country’s Recovery and Resilience Plan, known as the RRP.
Finance Minister Joaquim Miranda Sarmento said the agreement supports the government’s plans to expand construction and renovation of public housing for vulnerable families.
Focus on local housing plans
Local Housing Strategies are drawn up by municipalities to identify housing needs and priorities in their areas and set out projects aligned with national objectives, the EIB said.
EIB Vice President Ioannis Tsakiris stated that the bank’s financing would support an increase in Portugal’s public housing stock and expand access to homes.
