Centeno's High-Risk Deal: Portugal's Central Bank's New Headquarters Could Cost Up to 280 Million

Portugal's Central Bank Signs High-Risk Purchase Agreement for New Headquarters

The Banco de Portugal has entered into a high-risk purchase agreement for buildings intended to serve as its new headquarters, with a total cost that could escalate to 280 million euros. The initial down payment was 57.5 million euros, signaling the start of a project fraught with potential legal and urban planning challenges.

Key Details of the Deal

• The central bank's administration, led by Governor Mário Centeno, committed to a purchase agreement despite warnings of significant risks.
• The project involves the construction of two buildings in a 'core & shell' state, with the final fit-out phase potentially adding between 43 to 87 million euros to the total cost.
• The deal was signed without all necessary administrative approvals in place, raising concerns about potential legal and regulatory hurdles.

Urban Planning and Legal Challenges

• The construction faces 16 major contingencies, including issues with urban licensing and environmental impact assessments.
• The Câmara Municipal de Lisboa (CML) has confirmed that the licensing process was not completed and retains the authority to halt the project if legal or regulatory violations are detected.
• Concerns have been raised about the project's compliance with height restrictions and the need for an environmental impact assessment for the parking lot.

Project Timeline and Risks

• The project is already behind schedule, with delays in licensing and approvals from various public entities.
• The scale of the project, one of the largest in the Lisbon Metropolitan Area, poses additional challenges in terms of material procurement and construction logistics.

Governor Centeno's Ceremony

• Despite the unresolved issues, Governor Centeno participated in a ceremony to lay the first stone of the new headquarters, marking the symbolic start of construction.

Bank's Assurance

• The Banco de Portugal has assured that its interests are protected under the purchase agreement, with the responsibility for legal compliance resting solely on the seller, Grupo Fidelidade.