The announcement was made by the Algarve Regional Coordination and Development Commission (CCDR), which highlights that water resource management remains one of the major structural challenges for the Algarve territory.

The funding targets projects aimed at reducing water losses, strengthening the resilience of supply systems, and adapting the region to the impacts of climate change.

Applications for the call, titled "Urban Water Cycle (Local Distribution) – ITI CIM", are now open. Potential beneficiaries include municipalities, the local business sector, municipal, inter-municipal, or multi-municipal concessionaires, and entities operating under partnership arrangements.

Eligible interventions will receive a 60% co-financing rate and must align with the Strategic Plan for Water Supply and Wastewater and Stormwater Management (PENSAARP 2030) and the national "Water that Unites" (Água que Une) strategy, thereby promoting sustainable and smart water resource management.

Activities eligible for financial support include reducing losses in water distribution networks, rehabilitating water supply and sanitation infrastructure, and reusing treated wastewater.

Investments are also planned for the technological modernisation of systems, improving water body quality, mitigating saltwater intrusion, constructing and renaturing stormwater infrastructure, and developing awareness-raising initiatives regarding efficient water consumption.

With this new call for proposals, the Algarve 2030 Regional Program has now allocated a total of €42 million in cohesion funds (ERDF) to support investments in the region's urban water distribution and sanitation systems.