Portugal's Major Construction Projects in Jeopardy: Labour Shortages Threaten Progress

Portugal Surpasses 40% Implementation of Recovery and Resilience Plan (PRR)

Portugal has successfully exceeded the 40% implementation threshold of its Recovery and Resilience Plan (PRR) by the end of 2024. However, challenges loom as the country faces a labour shortage that could jeopardize over half of the planned projects.

Credits: Lusa

Pressures Intensify on Construction Sector

With only a year and a half left to complete the PRR, the construction sector is under immense pressure. Pedro Dominguinhos, president of the PRR National Monitoring Commission, acknowledged that while the goals set with the European Commission are being met, the physical execution of projects on the ground presents significant hurdles, primarily due to labour shortages and bureaucratic delays.

Urgent Need for Labour

Dominguinhos warned that without attracting more immigrant workers to the construction industry, Portugal may struggle to fulfill its commitments for both existing and upcoming projects, including thousands of housing units and numerous healthcare facilities slated for 2025.

Upcoming Municipal Elections Could Impact Progress

As municipal elections approach, potential changes in local governance could further delay the execution and initiation of public works. In response to these challenges, the government plans to present a reprogramming of the PRR to Brussels in January, aiming to replace delayed projects with those that are more advanced.

Investment Adjustments on the Horizon

Dominguinhos indicated that while some investments will be removed from the PRR, they will continue to receive financing through other means. This adjustment is crucial to ensure timely execution of essential projects, including a subway connection and other public infrastructure developments.