On May 2, shortly before the end of his term as governor of the Bank of Portugal (BdP) — which concluded this past Sunday — Mário Centeno, with his administration’s support, signed a preliminary contract with four companies of the Fidelidade Group for the construction of the new central bank headquarters on the former Feira Popular grounds in Lisbon.
The news, reported today by an online newspaper, further mentions that the legal and technical reports commissioned by the BdP warned of 16 serious contingencies that could jeopardize the deal, which will only be realized at the end of 2027.
In response, and when questioned by Lusa, the Bank of Portugal stated today that it complies with all the norms and regulations in the process of purchasing the new headquarters in Lisbon, ensuring this was reflected in the contract with Fidelidade.
“The Bank of Portugal, upon signing the preliminary purchase and sale contract, and continuing until the execution of the respective definitive contract, fully complies with the applicable legal and regulatory standards,” said an official source from the Bank of Portugal.
How much might the new headquarters cost? And what about the alerts?
In May, the Bank of Portugal announced it had signed a contract with Fidelidade to acquire a building on the former Feira Popular grounds in Entrecampos (Lisbon) for the institution’s future headquarters, valued at 191.99 million euros, with the finalization of the transaction expected by the end of 2027.
The online newspaper reported today that the future headquarters of the Bank of Portugal will cost more than 192 million euros, as the figure refers only to structural works, with the total cost possibly rising to 235 million euros.
Also responding to Lusa, the Bank of Portugal did not indicate the total estimated price for the new headquarters, stating only that “the purchase price of the building followed the lowest independent expert evaluation requested by the Bank of Portugal.”
Regarding the alerts raised by technicians, the central bank stated that in the entire process, “procedures and technical diligence of a national and international best practice nature were adopted for strict control of the operation’s legality, financial configuration, and patrimonial structure.”
The central bank further stated that it is up to the building promoters to “comply with the legal and regulatory norms in force regarding the operation and construction of the projected buildings and that the definitive contract will only be signed upon verification of this compliance.”
“The construction of the buildings and the subsequent execution of the definitive purchase and sale contract are dependent on the issuance of necessary administrative authorizations, namely building licenses to be issued by the Lisbon City Council, which should take place in due time,” as stated in the Bank of Portugal’s response to Lusa.
The compliance with environmental and urban planning rules also falls to the promoter, accentuated the Bank of Portugal.
Centeno approved a risky deal? CDS-PP requests urgent hearing
The CDS-PP announced it would request an urgent parliamentary hearing of the governor of the Bank of Portugal to explain the operations conducted for acquiring the institution’s new headquarters.
Following the newspaper’s report, the CDS-PP parliamentary group’s press office announced that the party “will submit today to the Assembly of the Republic a request to urgently summon the Governor of the Bank of Portugal, Mário Centeno, to the Budget and Finance Committee to provide explanations on these operations.”
It should be recalled that Mário Centeno’s term as governor of the BdP ended this Sunday without the government having indicated a successor.
Centeno, a former minister in António Costa’s PS Governments, has already shown willingness to continue for another term at the helm of the central bank, but the differences he has had with the Government make this seem unlikely.
However, this Sunday, Prime Minister Luís Montenegro told RTP that Centeno “meets all the requirements” to stay in the position. The decision will be made next Thursday.
In 2020, Centeno’s appointment as governor was highly controversial as he had left the Finance Minister position just over a month earlier.
Remember that the Bank of Portugal’s governor’s name is indicated by the Government but must pass through the Assembly of the Republic for a hearing.
Parliamentary committees only operate until next Friday, July 25, unless there is consensus among all parties, with Parliament’s activities resuming in September.
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