Fernando Alfaiate, head of Portugal’s Recovery and Resilience Plan (PRR), has issued a stern warning: projects approved under the plan that remain inactive and fail to progress risk losing funding. This comes as part of a series of measures aimed at accelerating the disbursement of funds to beneficiaries. Alfaiate explained that the PRR has implemented a mechanism to deactivate projects, similar to past practices with cohesion funds. This measure applies specifically to projects that are approved but remain stagnant. Projects deemed unlikely to meet deadlines must either accelerate their implementation or face deactivation, allowing for new projects with achievable timelines to take their place. While Alfaiate acknowledged the existence of such stalled projects, he did not quantify their number. The high demand for PRR funding, surpassing the targeted goals, has contributed to this issue, particularly in sectors like housing. To ensure the target of 26,000 housing units by 2026 is met, construction projects that haven’t begun must commence swiftly or face deactivation, prompting a replacement with projects capable of completing within the timeframe. Alfaiate also highlighted the importance of accelerating the overall execution of the PRR, aiming to avoid losing valuable funding. Although Portugal’s current execution rate of 32% is comparable to top performers like Italy, Spain, France, and Croatia, the need for swift action remains paramount.
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