It is providing €420 million to Águas de Portugal (AdP) and its operating subsidiaries to finance investments in water infrastructure.

This operation is guaranteed by the European Fund for Strategic Investments (EFSI), the core of the Investment Plan for Europe, the so-called Juncker Plan.

The loan will fund the construction and renovation of infrastructure throughout mainland Portugal, creating more than 7,400 jobs during the implementation stage.

The four-year programme will cover more than 1,000 improvements in water supply networks, improving services for 8 million people.

EIB vice-president Román Escolano said: “The positive impact of this EIB funding is not only economic and social but also environmental: promoting more efficient use of water resources strongly contributes to climate action, a priority of the EU bank”.

The EIB is also providing a €300m loan to the IFRRU (Instrumento Financeiro para a Reabilitação e Revitalização Urbana), a financial instrument aimed at fostering the social and economic regeneration of urban areas in Portugal, set up under the Portugal 2020 EU Partnership Agreement.

The EIB loan will fund improvements in housing, public spaces and infrastructure, generating around 14,000 jobs.

The Portuguese finance minister, Mário Centeno, said: “I welcome the increasingly developed partnership between Portugal and the European Investment Bank. As policy makers, we have to aim at seizing instruments that support and encourage quality public and private investment.

"By making the most of these instruments, we are helping to support the country's development in a responsible and sustainable way.”