Africa-Press – Cape verde. Vinci should be penalised, with an increase in the guarantee by 25 percent of the initial value for non-compliance with the six-month deadline for the implementation of the Cape Verde airport concession contract. But, instead of defending the country’s interests, and in a vain attempt to disprove A NAÇÃO, the Government omits the very clauses of the draft of the concession contract, extending the transition period from six to 12 months.
No sooner had the Cape Verde airport concession contract with the French group Vinci already been violated, allegedly, by the Cape Verdean state.
Reacting to the article in the previous issue of A NAÇÃO, noting the delay in putting into effect the concession contract for the country’s airports and airfields, whose period of six months for that purpose expired on 13 January, the Government, in a statement released on the last week, it decided to extend the period from six to 12 months.
With this, the Executive contradicts the draft approved by Resolution no 61/2022, of June 9, signed between the State of Cape Verde and Cabo Verde Airports, SA, a company formed by Vinci Airports, with the participation of ANA – Aeroportos de Portugal (30%), to pursue the object of the Concession. This Resolution was published in Official Bulletin (BO) No. 57, Series I, of June 9, 2022.
Still according to the same statement, “the signed contract provides for a set of precedent conditions that must be fulfilled so that it can enter into force, in its fullness. The deadline for compliance with the conditions precedent is set for up to one year, counting from the date of signature of the contract”.
And he adds as a mitigating factor: “Given the very complexity of processes of the nature of this concession, and wanting the State to ensure its legitimate interests, the Multidisciplinary Team for Monitoring the Concession of Public Airport Service was created which, according to Resolution of the Council of Ministers no. 70/2022, of 16 July, is working hard to ensure that these conditions are fully complied with”.
With the same warm cloth, the Executive says it understands that the maximum transition period of one year “is adequate for the fulfillment of all the precedent conditions, whether those of the concessionaire’s responsibility, or those of the grantor’s responsibility – the State of Cape Verde ”.
But the deadline, as stated and can be seen in the image (see box) is six months and with the possibility of two extensions of three months each and with penalties, as established in the contract. That is, the deadline is not one year, as the Government, in view of the article in A NAÇÃO, tries to pass to justify the delay in implementing the concession.
Furthermore, and for the purposes that matter, if the Government now says that the deadline is one year, it is implicitly assuming, and from now on, that there will be a new extension until July.
Historically, the Government decided to grant the country’s airports and airfields in 2019 and in 2020 bilateral contacts were initiated with Vinci and visits by Portuguese and French representatives to Sal. It is supposed to assess the state of the ASA and infrastructure, conduct traffic and finance studies, prepare for transition and discuss contract terms.
However, given the delay reported in the previous issue of this newspaper, the executive takes the opportunity to “pompously” say that “the process is going well”. With that, we can now wait for the month of July!
silent government
Basically, the clarification note from the Government omits information, when it should clarify why there was an extension revealed by A NAÇÃO and who asked for the extension: was the Vinci concessionaire, or the grantor, the State?
Apparently, it was the Vinci concessionaire that asked for the extension of the deadline and will be in the process of requesting its renewal until the month of July.
It now remains to be seen, and once again it is up to the Government to clarify, what were the grounds presented by Vinci to request the deadline for implementing the concession.
penalties
According to an expert contacted by this newspaper, “it is not true that the transition period” for Vinci to take over airports and airfields “is up to one year”, but six months.
“It is what is in the draft of the concession contract approved by Resolution no 61/2022, of 9 June. And in the event of non-compliance, either by the grantor, the State, or the concessionaire, extensions are allowed. In the case of the grantor, it would be three months and in the case of the concessionaire, it would be three months, plus three months, but, “it would have to reinforce the value that it must deliver as a guarantee by 25%, for another three months”.
But, for this purpose, according to our interlocutor, “the concessionaire has to make a substantiated request for an extension and the grantor, the State, has to accept this request”.
Our source also considers that, with this statement, the Government wants to convey the idea that the transition period is one year: “False!”
Our interlocutor stresses that the transition period is six months, with extensions allowed, but with penalties. “If there is a need for extensions, whether for the grantor or the concessionaire, there will be penalties for the parties”, he insists.
black in white
In accordance with clause 10.7.1 of the draft contract for the concession of airports and aerodromes to the Vinci group, published in the BO, the concessionaire may, fundamentally, if it believes that the conditions precedent provided for in clause 10.1.2 cannot be fulfilled within the term of six (6) months provided for in clause 10.2, request the extension of that period.
In this case, for two successive periods of three months. If this happens, the request must be granted, if the grounds invoked do not result directly from any action or omission directly attributable to the Concessionaire, nor result from a lack of diligence on its part.
It was also agreed between the parties that the impossibility of satisfying the condition precedent provided for in paragraph (vi) of clause 10.1.2 within a period of six months will not be considered as directly resulting from any action or omission attributable to the concessionaire, nor resulting from lack of diligence on your part.
And, finally, if the grantor approves the extension, the concessionaire must reinforce the Proposal Guarantee by 25% for each three-month extension.
This is what the Government’s communiqué does not assume in practice, with clear damage to the country.
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