The debates surrounding the extension of the contract deadline led to the rejection of all proposals to prolong it at the Lisbon Municipal Assembly, including the initiative by the city council, led by the PSD-CDS-PP coalition, to stipulate a final and non-extendable term by December 31, 2032.
Following the rejection of the contract extension, councilman Diogo Moura (CDS-PP), present at the Assembly meeting on behalf of the council, stated that the municipality aims to “avoid litigation as much as possible” and will now evaluate a solution with SGAL.
Diogo Moura emphasized that the proposed deadline of December 31, 2032, had been negotiated between the city council and SGAL over the past three months, with an agreement that this timeline was feasible for completing the contract.
The contract in question, signed in December 1984 between the city of Lisbon and SGAL, involves urbanization and the rehabilitation of degraded areas in Alto do Lumiar, as well as the construction of housing for the municipality to “promote the rehousing of residents living in poor conditions.”
“It resembles an urbanization contract where the city of Lisbon owns the majority of the land, and SGAL is the executing entity of the plan in these areas,” according to the city council proposal, which noted the contract was initially set to expire at the end of 2010 but has been extended multiple times since.
Initially extended to 2020 in 2011, and more recently in December 2024, the contract had been extended by three months to March 31, 2025, the current date.
Proposed by the municipal executive under the leadership of Carlos Moedas (PSD), the city council approved the extension until 2032 on March 19, extending it by seven years and nine months, with PSD/CDS-PP voting in favor, PS and PCP abstaining, and BE, Livre, and Cidadãos Por Lisboa (elected by the PS/Livre coalition) voting against.
In the Municipal Assembly, PS highlighted “many doubts” about the PSD-CDS-PP led proposal, criticizing the “lack of transparency,” and suggested extending the contract by two years, up to March 31, 2027.
In response to the socialists’ initiative, PSD suggested a two-week extension, precisely “until April 17,” to allow for the clarification of doubts, but their proposal was rejected, as was the proposal from PS.
Furthermore, Carlos Moedas’ executive proposal was voted down, with rejections from BE, Livre, PEV, two CPL deputies, PS, and Chega, abstentions from PCP and PAN, and approvals from PSD, IL, MPT, PPM, CDS-PP, Jorge Nuno Sá, and Margarida Penedo.
During the discussion, IL highlighted “the enormous irresponsibility of most political forces,” including the PSD-CDS-PP-led council, for presenting the proposal at the last minute.
“We do not want this to escalate to a court dispute. We do not want that area of the city to be stalled due to legal issues. The 40 or so years that this contract has dragged on without being completed are already too much,” stated IL deputy Rodrigo Mello Gonçalves.
Against the extension, PEV claimed “deadlines slip and SGAL’s priority interests greatly differ from public ends,” and Chega criticized “delays, slowness, and process halts.”
PCP explained that it “never obstructed” these extensions but disassociated from the process’s inception and management choices over time, “which have left the municipality in breach of the agreement, notably since 2011,” a year when it considered a “more favorable” solution could have ended this unnamed contract.
BE emphasized that the contract with SGAL has been “very non-transparent” and “detrimental to public interest,” whereas PAN expressed concerns over real estate speculation.
In defense of the extension, the PSD noted that “seven municipal neighborhoods have been constructed because of this notorious contract,” responding to BE’s criticisms regarding housing promotion, listing areas such as Alta de Lisboa Centro, Alta de Lisboa Sul, Alto do Faia, Alto do Chapeleiro, Paço do Lumiar, Quinta das Lavadeiras, and Ameixoeira.
