The award of the major project for the new “Violet Line” (Linha Violeta) light rail system in northern Lisbon has taken a significant turn. At the centre of the issue is the Chinese train manufacturer CRRC, which was originally involved in the tender process as part of a consortium.

The development was triggered by an investigation by the European Commission under the EU’s new regulation on foreign subsidies. The Commission concluded that CRRC’s Portuguese subsidiary may have benefited from state aid capable of distorting competition. Specifically, the case concerned various forms of state support within China: CRRC is said to have received government grants totalling around €471 million in the three years prior to the bid. In addition, the company was granted a tax advantage in China, effectively reducing its corporate tax rate by 10 percentage points compared with the standard rate of 25%—also consistently over the same period. Advantages in the procurement of raw materials and components were likewise assessed as potentially distortive to competition. This may have enabled the consortium to submit an unduly low bid.

The Commission had already launched an in-depth investigation in November 2025 after indications of such distortions emerged. The case represents one of the first applications of the new EU rules aimed at protecting the internal market from unfair competion.

The construction and operating consortium for the Violet Line comprises several companies led by the Portuguese construction group Mota-Engil. It also includes the rolling stock manufacturer as well as additional partners responsible for operations and maintenance. Following the EU’s decision, the consortium was restructured in April 2026: CRRC will be replaced as supplier by the Polish manufacturer PESA. EU authorities approved this change, thereby safeguarding a substantial share of the project’s funding through the Plano de Recuperação e Resiliência (PRR), known in English as the Recovery and Resilience Facility (RRF). PESA will supply five-section, bi-directional articulated low-floor tram units.

The Linha Violeta is currently one of the most important infrastructure projects in the Greater Lisbon area. It involves the construction of an 11.5-kilometre standard-gauge light rail line with a total of 17 stations, the majority of which will be above ground. Three stations will be located in tunnels, with a further two in open cuttings. The line will connect the municipalities of Loures and Odivelas, incorporating both surface and underground sections.

In addition to the track infrastructure, the project includes the construction of a depot, the procurement of new rolling stock, and maintenance services.

The new line is designed as an extension of the existing Yellow Line, connecting to it at Odivelas. Forecasts suggest that it will carry around 9.5 million passengers in its first year of operation, while significantly reducing private car use and CO₂ emissions.

Following the restructuring, completion of the line is now scheduled for 2029.

We last reported here on the expansion plans for the Greater Lisbon area: