The business model adopted for the high-speed project and the extensive support provided by the European Union allow the related costs for the Portuguese state to be staggered.
All the connections are expected to generate sufficient income to cover operations. The cash-flow will also be at a level to allow the amortization of the investment particularly with regard to the Lisbon - Porto and Lisbon - Madrid links.
For the 2007-2013 period, the European Commission is attributing overall funding of 1,488 million euros to the project.
The high-speed network in Portugal was awarded funding of 383.38 million euros from the budget for the Trans-European Transport Network.This corresponds to approximately 10% of the 3.9 billion euros available for the rail sector in the 27 countries of the European Union.
Business Model
The Business Model chosen for the development of the infrastructure is based on the setting up of Public-Private Partnerships (PPP).
The Main Aims of the Business Model are to:
- Ensure viability for the Portuguese State
- Guarantee Compliance with Scheduling
- Guarantee High Quality of Service
- Minimize Risks
The PPP for the infrastructure (PPP1 to PPP5) will be set up through concession contracts for the project including construction, funding and maintenance over a period of 40 years.
The PPP for signalling and telecommunications (PPP6) will be set up through a concession contract for the project including construction, funding and maintenance over a period of 20 years.
Strategic management functions for circulation and allocation of capacity will continue to be the responsibility of REFER which is the managing body for rail infrastructures in Portugal.