Infrastructure: Investment news in Portugal

The Minister of Infrastructure acknowledged regulatory risks from competition authorities regarding Lufthansa's planned acquisition of a stake in TAP Air Portugal. European regulators could require the airline to surrender airport take-off and landing slots on routes where competition would be reduced following the German carrier's entry. Meanwhile, the government plans to prepare an initial public offering for the 5% TAP stake reserved for employees by early 2027.

The Portuguese state is returning to the capital of the power-grid operator Redes Energéticas Nacionais (REN) by purchasing a 13.7% stake from the investment firm Pontegadea. The acquisition, handled by the state holding company Parpública, marks a strategic move to regain influence over national electricity and gas networks. Prime Minister Luís Montenegro described the investment as a way to protect national interests and manage energy costs.

The Portuguese government has approved the 2026-2030 Development and Investment Plan for the National High and Medium Voltage Electricity Distribution Network (Plano de Desenvolvimento e Investimento da Rede Nacional de Distribuição de Electricidade em Alta Tensão e Média Tensão or PDIRD-E). This 1.58 billion euro project aims to improve grid resilience and reliability following recent storm damage and blackouts. The investment also supports the energy transition and the integration of renewable energy sources into the national grid.

Novo Banco reported a 15.6% decline in net profits to 367.2 million euros for the first half of 2026. The bank attributed the decrease to extraordinary costs associated with its sale to the French group BPCE and a higher effective tax rate.

Several large Portuguese companies have released their first-half results for 2026, showing varied performance across sectors. While the utility company EDP and the bank Millennium BCP reported profit increases of 3% and 12.7% respectively, the retailer Jerónimo Martins and the industrial firm Corticeira Amorim saw their profits decline.

Google officially launched its new transatlantic submarine cable, Nuvem, which connects Myrtle Beach in the United States to Sines. The infrastructure aims to increase the resilience of digital communications across the North Atlantic and is expected to be fully operational by 2027.

The fintech company Trade Republic has opened a branch in Portugal, now offering a local bank account number (International Bank Account Number or IBAN) and a simplified tax reporting process. The platform, which has surpassed 200,000 users in the country, also introduced a 3% interest rate on balances up to 50,000 euros.

Galp has announced that the agreement to merge its refining and marketing businesses with the Spanish company Moeve has been pushed to the second half of this year. Despite the delay, the company reports that negotiations are progressing constructively. Meanwhile, Galp noted a 175% increase in its refining margin during the second quarter compared to the same period in 2025.

The national airline TAP Air Portugal has successfully concluded a 350 million euro debt issuance, consisting of senior bonds with a 4.750% interest rate maturing in 2031. The operation was increased by 50 million euros beyond the initial target, which the company's finance director, Renato Inácio, cited as a sign of strong investor confidence.

The Portuguese Development Bank (Banco Português de Fomento or BPF) will provide one billion euros in credit to support companies and public entities affected by storms earlier this year. The initiative, led by BPF president Gonçalo Regalado in partnership with the European Investment Bank, aims to facilitate immediate liquidity for businesses.

The government has approved an expenditure of up to 4.5 million euros to demilitarise the Alcochete Shooting Range. This process is a necessary step to clear the site for the construction of the new Luís de Camões Airport, which will serve the Lisbon region.

Lufthansa Technik Portugal CEO Torsten Raabe stated that the company's new facility in Santa Maria da Feira is an independent investment from the group's bid to privatize TAP. The company also emphasized that its recent acquisition of Italy's ITA Airways does not affect its strategic interest in the Portuguese carrier.

A technical advisory group, the Technical Advisory Group (Grupo de Aconselhamento Técnico or GAT), has presented a final report to the Minister of Environment and Energy, Maria da Graça Carvalho, proposing structural reforms to the National Electrical System (Sistema Elétrico Nacional or SEN). While the report confirms the system remains robust, it emphasizes the need for better monitoring, increased international cooperation, and infrastructure investment to ensure future security following the major blackout of April 2025.

The Portuguese government has officially invited the Lufthansa Group and Air France-KLM to submit binding proposals for the acquisition of a minority stake in the national carrier, TAP Air Portugal (TAP). Lufthansa has confirmed its strong interest, describing the airline as a strategic asset and promising a competitive offer. This invitation marks a significant step forward in the privatization process for the state-owned company.

The European Commission has intervened in the Lisbon Metro expansion project, forcing the consortium led by Mota-Engil to replace a Chinese subcontractor with a Polish supplier. The decision follows an investigation which determined that the Chinese firm, CRRC, benefited from unfair foreign subsidies. This ruling affects the construction of the new Violet Line, which is designed to connect Lisbon to the municipalities of Odivelas and Loures.

The race to privatise the national airline TAP Air Portugal has narrowed to two bidders, Lufthansa and Air France-KLM, following the withdrawal of the International Airlines Group (IAG). IAG, which owns Iberia and British Airways, stated that pursuing a minority stake in the Portuguese carrier did not align with its shareholders' interests. The government agency Parpública now has 30 days to review the remaining proposals.

The national postal service (CTT - Correios de Portugal) reported a net profit of €50.7 million for 2025, an 11.4% increase driven largely by e-commerce and its banking division. The announcement comes as CEO João Bento prepares to leave the company after seven years at the helm. Shareholders should note that the board has proposed a dividend payment of 19 cents per share following the strong financial performance.

Comboios de Portugal (CP) has signed an amendment to its contract with Alstom-DST to purchase 36 additional trains for urban services, bringing the total investment to €1.8 billion for nearly 200 new units. Minister of Infrastructure Miguel Pinto Luz described the move as the largest investment in train purchases in the country's history. Travelers should note that the new units are expected to begin arriving in 2029, two years earlier than originally planned.