Portugal government unveils financing plan for storm‑damaged municipalities

After severe storms struck Portugal last winter, the government approved a financing mechanism to rebuild municipal infrastructure. The scheme provides 60% grant funding and 40% loans to cover proven damages to roads, water and sanitation networks, schools and other public assets.

Economy and Territorial Cohesion Minister Miguel Castro Almeida said many municipalities have already received advances, and the remaining ones can apply for the new aid. Applications will be assessed to verify actual losses, with about 19,000 km of roads already cleared. Around 30% of housing‑reconstruction requests were rejected for ineligible expenses or suspected fraud, and cases were referred to the Public Prosecution Office.

The minister also noted ongoing support for fire brigades and other local associations, and acknowledged delays in insurance payouts while urging faster processing. Some municipalities, such as Leiria and Marinha Grande, are still completing their recovery procedures.