Africa-Press – Cape verde. The Arbitration Court ruled in favor of CV Interilhas in the dispute with the State of Cape Verde, ordering the Government to pay compensation amounting to several million escudos, following breaches of contract related to the concession of inter-island maritime transport. In parliament, the deputy prime minister stated that the executive branch does not accept the decision and guaranteed that the State will go “to the limit” to protect the public interest in this dispute.
The ruling, which rules in favor of the maritime carrier in practically all points of the process, recognizes the violation of the exclusivity clause provided for in the concession contract and obliges the State to pay 21,293,037$58, corresponding to 10% of the revenue obtained unduly, in addition to compensation in the amount of 432,380,225$86.
The court also imposed a daily fine of $1,062,359.28 for each day of noncompliance with the exclusivity rule from May 31, 2024, plus interest on arrears.
The State is also obliged to compensate the company for amounts related to contractual remuneration, with payments of $105,058,853.00 for each of the years 2021 and 2022.
For 2023, the same 10% rate will be applied to the value of revenues recorded between January 1st and April 19th.
The arbitration court also ruled on the operating costs of the concession, considering some of the expenses presented by CV Interilhas to be valid. Thus, the State will have to pay R$91,489,968 (with deductions), R$377,189,199 and an additional amount to be calculated based on the accounts for the first quarter of 2023.
Regarding the violation of schedules and the suspension of the tariff update, the court also ordered the State to pay $94,361,388.90, related to non-compliance with schedules between April 2023 and May 2024, and additional amounts related to the non-change of tariffs between April 2023 and February 2024, totaling more than 91 million cruzeiros.
CV Interilhas’ right to sign a consolidated version of the concession contract, resulting from the third amendment, was also recognized.
In view of the substance of the decisions favorable to the plaintiff company, the State of Cape Verde was ordered to bear 80% of the legal costs, including the reimbursement of the amounts already paid by the carrier in this regard.
Government
Today, during the State of the Nation debate, Deputy Prime Minister and Finance Minister Olavo Correia assured that the State will go “to the limit” to protect the public interest in this dispute.
“As a government, we do not agree with the Arbitration Court’s decision, of course,” said Olavo Correia.
According to the governor, the executive branch has a team of lawyers and legal advisors mobilized to deal with the case.
“We have a machine in place and specialized services to, to the limit, defend the public interest and the interests of the State of Cape Verde,” he assured.
The concession for inter-island maritime transport services, granted before the Covid-19 pandemic, has been marked by disagreements between the State and the concessionaire since 2019, according to Olavo Correia.
As he explained, there was arbitration due to a lack of understanding between the parties, as provided for in the contract. However, he continued, the verdict did not have the consensus of all the arbitrators involved.
“It was a losing vote,” he said.
The minister stressed that, in addition to the dispute surrounding the amounts sent to the Government that were not paid, the Cape Verdean State also has concerns regarding the level of service provided.
“We have complaints to make and we have to try to ensure that the level of service is met,” he said.
Despite the disagreements, Olavo Correia defended the concession model adopted by the country, stating that the results demonstrate positive progress.
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