Algarve risks losing €60 million in EU funding as Metrobus project stalls

After being announced with pomp and circumstance in 2023, the Algarve’s Metrobus project is in serious jeopardy, with local officials warning that €60 million in EU funding could be lost in the coming weeks.

The proposed electric bus rapid transit system, designed to connect Faro, Olhão and Loulé, has secured €60 million in funding from the European Union, but a further €40 million is still needed to launch the first phase of the project.

Unless a financing solution is found in the coming weeks, the region risks losing the already secured €60 million, according to the Algarve’s Regional Coordination and Development Commission (CCDR Algarve).

The first phase would see a dedicated 10-kilometre corridor linking Faro railway station, the University of the Algarve and Faro Airport, with services expected to begin in 2029. The complete Metrobus network is estimated to cost around €220 million.

The project aims to reduce traffic congestion by removing an estimated 30,000 to 40,000 vehicles from Algarve roads while providing a faster, more sustainable public transport alternative.

However, the mayors of Faro, Olhão and Loulé all spoke with SIC to argue that municipalities should not be expected to finance the remaining investment without support from central government.

Loulé mayor Telmo Pinto said the Algarve should receive the same level of state backing as similar transport projects elsewhere in Portugal.

“The Algarve is seen as a wealthy region. It isn’t. The Algarve needs the State’s support,” he told SIC.

Faro mayor António Pina said the project still lacked a clear governance and financing model.

“We still don’t have a management model or all the funding sources guaranteed,” he said.

Pina and Pinto argued that the government should follow the example of projects in Coimbra and Porto, where the State, through Infraestruturas de Portugal and the relevant ministries, plays a central role alongside local authorities.

Despite the funding struggles, Olhão mayor Ricardo Calé said his municipality remains committed to finding a solution.

“We will do everything we can to ensure this project goes ahead,” he said, highlighting the importance of connecting Olhão to key regional infrastructure, including the future Central Algarve Hospital, Faro Airport and the University of the Algarve.

With the clock ticking, CCDR Algarve president José Apolinário remains optimistic that a compromise can still be reached.

“In the coming weeks, I hope a proposal will emerge that opens the way forward,” he said. “If the municipalities do not have proposals, there are no conditions for the Metrobus to move ahead.”

The urgency comes as the central Algarve area continues to grow rapidly. According to SIC, the combined population of Faro, Olhão and Loulé has increased from around 150,000 residents five years ago to approximately 180,000 today, adding further pressure to the region’s transport infrastructure.

“15-minute city” goal loses steam

The Metrobus project was first announced in 2023 by then-Prime Minister António Costa.

The project featured 24 stops and aimed to serve a population of around 185,000 people in the three municipalities.

The ‘metrobus’ preliminary study was presented at the time by CCDR Algarve boss José Apolinário and Susana Castelo, CEO of TIS, a company specialising in transport and mobility.

“Our goal is to make these three cities a 15-minute city and ensure that it is possible to travel between them in 15 minutes,” said Apolinário at the time.

The line was set to include stops at three railway stations – Parque das Cidades near the Algarve Stadium, Bom João in Faro, and Olhão – and at “fundamental” facilities and services in the region, such as Faro International Airport and the Gambelas hub of the University of the Algarve (5,300 students).

According to the project’s preliminary study, around 40,000 journeys per day could be made – with possible extensions of the line to Albufeira and Fuzeta also being considered.

But with nearly half of the funding still not secured and time running out, the Metrobus project is looking to remain nothing more than a pipe dream.