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Azores: Applications for Urban Rehabilitation Funding

16 December 2017

Applications for financing projects under the Financial Instrument for Urban Rehabilitation and Revitalization (IFRRU 2020) have been open since Friday, December 15, in the Azores, the vice-president of the Regional Government announced.

“Azorean families, companies and other entities can now apply for financing for rehabilitation works under extremely favourable conditions, including investments in energy efficiency in rehabilitated buildings,” Sérgio Ávila said in Angra do Heroísmo.

The national instrument makes use of Community funds, in this case the Azores 2020 Operational Program and loans contracted by the Portuguese state from the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB). No limits to the funding exist.

Revitalization of urban centres

“Regional participation in this instrument is a further step towards the revitalisation of urban centres, contributing to attracting new residents, economic activities and services to urban areas, generating jobs and stimulating economic growth. It will also contribute significantly, we are certain, to the growth and specialisation of the construction sector,” the vice president of the Regional Government emphasised.

The Azorean executive had already announced the allocation of 20 million euros to municipal investments in urban regeneration.

Candidates: individuals, companies and other entities

According to Rui Von Amann, the regional director of Planning and Structural Funds, the response of the city councils has been “positive” and “60 to 70% of the budget has already been allocated”, with only one call for tenders held so far.

Individuals, companies or other entities may apply for the IFRRU, with costs for “complete rehabilitation of buildings, housing or other activities, or more appropriate integrated energy efficiency solutions for rehabilitation,” deemed as eligible.

The support is granted in the form of “financing on terms that are more advantageous than those on the market” and companies will also have access to guarantees through the Portuguese Mutual Guarantee System.

Buildings must be located in specified areas and be more than 30 years old

The buildings that are to be rehabilitated must be 30 or more years old and located in an area delimited by the municipalities, according to the Integrated Sustainable Urban Regeneration Plan (PIRUS), but the instrument is also available for abandoned industrial units.

In the Azores, the banks Santander Totta, Banco Português de Investimento (BPI), Millennium BCP and Banco Popular Portugal are participating in the IFRRU.

Original Story: Diário Imobiliário / Lusa

Translation: Richard Turner