LISBON, Feb 5 (Reuters) – Portugal faces more than 4 billion euros ($4.7 billion) in direct reconstruction costs after last week’s devastating Storm Kristin, Economy Minister Manuel Castro Almeida said, citing preliminary government estimates.
‘It will be a very significant shock to the economy… the more than 4 billion euros does not include indirect costs’ such as disruptions to industry supply chains, he told national broadcaster RTP on Wednesday evening.
He said that ‘several entrepreneurs plan to build entirely new factories because the current ones are completely unusable, which means recovery could take many months.’
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Workers at companies affected by Storm Kristin will have a layoff regime that guarantees their total net salary of up to 2,760 euros per month, with 80% covered by Social Security and 20% by companies, to avoid job cuts during reconstruction, he added.
The storm swept through central mainland Portugal in the early hours of January 31, with winds reaching 200km/h and heavy rain, causing widespread damage to homes, factories and critical infrastructure and killing at least six people.
The region of Leiria and Marinha Grande, one of Portugal’s main industrial centers, known for its plastics and metallurgy industries, was one of the areas most affected by the storm.
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The government on Sunday approved a 2.5 billion euro package of loans and incentives to help people and businesses rebuild after the storm.
The Iberian Peninsula has suffered a series of storms that have brought heavy rain, snow and strong winds in recent weeks and is now being hit by Storm Leonardo.
