This project is about the creation of a financing delivery mechanism, with a range of stakeholders, involving public and private sector resources for urban rehabilitation and revitalisation. The funds will be used for private, social or affordable housing projects as well as rehabilitation of buildings for economic activities such as offices, hotels and restaurants in cities throughout Portugal. Fifty percent of the financing comes from public bodies, including the EIB, the European Commission via ESIF, the Council of Europe Development Bank and Portuguese public authorities. Matching these funds will be private sector resources from financial intermediaries, mainly local banks. The final beneficiaries will include municipalities, SMEs, and other public or private entities.

Final beneficiaries present their project proposals to the local financial intermediaries. Applications for financing are subject to the initial decision of the financial intermediary having regard in particular to its credit risk policy, the opinion of the related municipality concerning urban regeneration plan and some other technical eligibilities. Assuming the project proposal meets the eligibility criteria, it will be approved and the local financial intermediary will disburse the funds to the project.

The main feature of the programme is that the funds can be re-used several times (revolving fund) as an efficient and sustainable way of financing. The funds will be revolving within the life of the loans from the EIB et al. The lending to the final beneficiaries will typically be for shorter periods than the financing. This means that returning capital from early loans can be reused for other projects, provided they meet the same conditions as the first round of lending. This creates a multiplier effect on the original financing.