Teixeira Duarte

Lisbon, Portugal – Construction conglomerate Mota-Engil announced today a significant boost to its order backlog, anticipating an addition of approximately €800 million from its involvement in the first phase of Portugal’s planned high-speed rail network.The project, a landmark infrastructure undertaking, is expected to dramatically improve transportation links between major Portuguese cities.

The company,headed by Carlos Mota dos Santos,confirmed the financial impact in a statement to the Portuguese Securities Market Commission (CMVM). Mota-Engil’s stake in the Lusolav Consortium, the group responsible for delivering the initial segment of the high-speed line, is 45%. The consortium also comprises established Portuguese construction firms Alves Ribeiro, Driver, and Gabriel Couto.

While the precise route of the first section remains under final governmental review, current plans indicate the line will connect Lisbon to either Porto or the Spanish border, potentially facilitating connections to the broader European high-speed rail network. The Portuguese government initially approved the high-speed rail plan in 2004, with various iterations and delays over the years due to funding challenges and shifting political priorities.The current revival of the project is partially funded by European Union recovery funds allocated to Portugal.

The €800 million figure represents Mota-Engil’s proportional share of the overall contract value for the first phase.Industry analysts predict the entire high-speed rail project, when completed, could exceed €4 billion, making it one of the largest infrastructure investments in Portugal’s history. Mota-Engil, with a current market capitalization of approximately €2.5 billion (as of November 2023), is well-positioned to capitalize on further phases of the project. The company has previously been involved in major infrastructure projects across Portugal, africa, and Latin America, including highway construction, port development, and railway lines.