Portugal Launches €3B Lisbon–Porto High-Speed Rail with €875M EIB Financing

Portugal’s most ambitious infrastructure project in recent history officially broke ground with the signing of a landmark concession and financing agreement for the first phase of the Lisbon–Porto high-speed rail line. The signing ceremony, held at the headquarters of Infraestruturas de Portugal (IP), marked the formal launch of Phase 1 with a 30-year concession granted to Avan Norte – Gestão Da Ferrovia de Alta Velocidade, a company formed by the Portuguese consortium LusoLAV.

This strategic initiative will revolutionize intercity travel in Portugal, cutting journey times between the country's two largest cities from nearly 3 hours to just 1 hour and 15 minutes. With an expected annual ridership of over 10 million, the Lisbon–Porto high-speed rail line is positioned to become a cornerstone of national mobility, sustainability, and economic development.

€875M EIB Financing Signals the Start of a €3B Vision

At the heart of this transformative project is the European Investment Bank (EIB), which signed an initial €875 million financing package with Avan Norte. This loan is the first tranche of a €3 billion commitment by the EIB approved in 2024 to support the full construction of the new high-speed corridor.

The financing is supported by the InvestEU program, the European Union’s flagship vehicle to stimulate over €372 billion in additional investment between 2021 and 2027. With this agreement, the Lisbon–Porto high-speed rail becomes the single largest project ever financed under InvestEU, emphasizing its strategic significance at both national and EU levels.

In addition to the EIB loan, the project will be supported by:

• €900 million from other national and international financial institutions

• €480 million in grants from the Connecting Europe Facility (CEF)

• €150 million in co-financing from Infraestruturas de Portugal (IP)

A Game-Changing Investment for Portugal

Portugal’s Minister of Infrastructure and Housing, Miguel Pinto Luz, hailed the project as “a historic and strategic investment,” comparing it to the construction of the upcoming Lisbon airport in terms of national significance.

“These are projects that enjoy broad national consensus. It is a great sign of democratic maturity and a clear commitment to rail as a sustainable backbone for economic growth,” said Pinto Luz.

Nadia Calviño, President of the EIB, described the rail link as a “game changer,” adding:

“It is the first high-speed rail line in Portugal, and it will significantly improve the lives of Portuguese citizens while enhancing connectivity and competitiveness.”

Teresa Ribera, European Commission Executive Vice-President, emphasized how the project aligns with Europe’s green and just transition goals:

“This line is a decisive investment that strengthens our territorial cohesion and responds to the climate crisis. It shows how infrastructure development must be aligned with long-term environmental responsibilities.”

Project Scope: What Phase 1 Includes

Phase 1 of the Lisbon–Porto high-speed railway will span 143 km, from Porto-Campanhã to Soure (Coimbra district). The first section now under contract will cover 71 km between Porto-Campanhã and Oiã in the Aveiro district. It will be constructed, operated, and maintained by Avan Norte under a 30-year Public-Private Partnership (PPP).

Major components of this section include:

• A new underground high-speed station in Santo Ovídio (Vila Nova de Gaia)

• Adaptation of Porto’s Campanhã Station for high-speed rail

• A new bridge over the Douro River

• New links to the existing Northern Line, including near Canelas

• A new traction power substation in Estarreja

• 71 km of brand-new high-speed railway infrastructure

Miguel Cruz, President of Infraestruturas de Portugal, emphasized the transformative nature of the project:

“This is more than a historic milestone—it is a national commitment to a sustainable and cohesive future. We are proud to lead this transformation in partnership with trusted national and European stakeholders.”

Territorial Cohesion, Sustainability, and Economic Impact

The Lisbon–Porto rail line is expected to be a game changer for territorial cohesion by reducing disparities between urban centers and interior regions. It will also significantly reduce road and air transport emissions, contributing to the EU’s climate and mobility goals.

According to Jean-Christophe Laloux, EIB Director General of Financing and Advisory within the EU:

“This project supports sustainable mobility, fosters competitiveness, and strengthens Europe’s response to climate change.”

In turn, Carlos Mota Santos, Chairman and CEO of Mota-Engil Group representing Avan Norte, emphasized the pride of being part of a truly transformative national endeavor.

“This is a recognition of the capacity of Portuguese engineering and a testament to our ability to earn the trust of global financial institutions. It marks Portugal’s entry into the European high-speed rail network.”

A Symbol of European Unity and Ambition

The Lisbon–Porto high-speed rail project encapsulates the essence of the European Green Deal, regional cohesion, and sustainable growth. With funding secured and implementation underway, Portugal is set to write a new chapter in modern, climate-resilient infrastructure that places people, the planet, and connectivity at its heart.

Infraestruturas de Portugal will oversee all technical and regulatory aspects of the project, ensuring it meets the highest standards of quality, sustainability, and alignment with EU transport priorities.