Cabo Verdean government wants to renegotiate maritime connections concession contract

Praia, Oct  13 (Inforpress) – The Government admits to renegotiating next year the concession contract for the public interisland passenger and cargo transport service, took over since 2019 by CV Interilhas, led by the Portuguese company Transinsular.

The position is contained in the supporting documents for the 2021 State Budget bill, which the Government handed this month to Parliament, the last one prepared by the Executive in this legislature, in view of the forecast of legislative elections until next March, and includes a cut of almost 30% in subsidies, which include compensatory compensation to CV Interilhas.

“The subsidies item is budgeted at 629 million escudos for 2021, foreseeing a 29.4% decrease compared to the Rectifying Budget 2020, essentially justified by the projected renegotiation of the concession contract for the maritime lines”, reads document, this being one of the several cuts planned by the Government, to try to rebalance public accounts, affected by the crisis generated by the COVID-19 pandemic.

For 2020, in the budget prepared after the COVID-19 pandemic and which came into force in August, the same item – about half for subsidizing maritime transport – was budgeted at 891 million escudos, compared to the 729 million escudos initially forecast , and in 2019 with 160 million escudos, but in this case the CV Interilhas concession only started in mid-August.


Inforpress / Lusa

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