Africa-Press – Cape verde. From economist to economist”, is how Paulino Dias entitles the “message” he sent, Thursday, 21, to the Deputy Prime Minister and Minister of Finance, Olavo Correia, about what he considers a “brutal rise” in the prices of inter-island shipping. “The Government still has time to review this measure”, says this Cape Verdean economist.
Paulino Dias, used his page on the social network Facebook to make his considerations/readings on the new concession contract and the increase in the prices of inter-island maritime transport that has been generating widespread discontent, especially among traders, farmers, drivers and passengers of the Santo Antão-Sao Vicente circuit.
“I think that the Government still has time to review this measure and move away from it. From Economist to Economist: Mr. Minister of Finance Olavo Correia will naturally be aware of the potential economic impacts of this increase in vehicle transport costs between those two islands. Especially for an island (Santo Antão), which already faces very difficult structural economic challenges”, advanced Paulino Dias in his publication.
Concession contract “scary for public coffers”
This “appeal” was made after some considerations/interpretations or readings of the new concession contract, which in his view is “scary for public coffers” – a model that is “unknown in other parts of the world”.
Transfer of “all risks” to the State
“In this revision of the concession contract, what we see is the transfer of all risks to the State of Cape Verde”, considers the economist referring to both economic, financial and operational risks.
Since “in Public-Private Partnerships there are risk management and sharing agreements between the State (grantor) and the private sector (concessionaire)”, Paulino questions why “in this specific case (…) the essential risks were ‘pushed ‘ to the public part,” he added.
Based on Annex III, paragraph II, it explains that “the device for annual updating of the amount of the compensatory subsidy contains a ‘subtlety’ that is at least aberrant, but potentially harmful to the public purse”.
Economic crime against Santo Antão
Considering that the “brutal rise in the price of vehicle transport mainly affects trade and local tourism between the islands of Santo Antão and São Vicente”, this economist says that this situation reveals itself as an “economic crime for Santo Antão”.
“This, in addition to not having any support in Science, becomes an immorality and an economic crime against the island of Santo Antão”, he advanced, noting that he is surprised by “the complicit silence” of the three Santo Antão municipalities and the “Illustrious Deputies”.
“Cape-verdura” and “salgalhada” in maritime transport in Cape Verde.
In the opinion of this economist, the increase in the price of maritime transport was an “authentic salty mess” that “will certainly go down in history and in economics textbooks, studied in faculties around the world”.
The same is said in solidarity with the farmers, traders, owners and drivers of vans who regularly make the Santo Antão-São Vicente-Santo Antão circuit, those who will suffer the most from what he called “cabo-verdura” and “salt” in maritime transport in Cape Verde.
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