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Lusa - Business News - Cabo Verde: CV Interilhas with 80% drop in invoicing in April




Praia, July 10, 2020 (Lusa) - Revenues of CV Interilhas, maritime transport concessionaire in Cabo Verde, fell 80% in April, a month in which no passenger connections were made due to the state of emergency, but the government said to guarantee the continuity of the operation.

According to a supporting document to the proposal of the Amending Budget for 2020, presented by the government and which is voted on Friday in parliament, the CV Interilhas, led by the Portuguese Transinsular, which assumed in August the concession for maritime transport of passengers and cargo in Cabo Verde for 20 years, guaranteed last year (four and a half months) 1,775 trips, to all islands, carrying 217,604 passengers.

It represented an increase of 24% compared to the traffic of the same period, with emphasis for the islands of Boavista (year-on-year growth of 382%), Sal (98%) and São Nicolau (66%), a trend that according to government data was confirmed in the first quarter of 2020.

"Until March, despite the effects of the crisis caused by Covid-19, 131,230 passengers, 10,587 vehicles and 11,833 tonnes of general cargo were transported, representing an average growth of 17% concerning the same period of the previous year," the document said.

It added that the restrictions imposed on the movement of people and general stagnation of the economy, namely during the period of emergency, which lasted from 29 March to 29 May in a differentiated way by islands, caused a strong decline in the activity of maritime transport of interisland cargo and passengers.

Despite these consequences, and after passenger maritime connections have been gradually resumed since 11 May, the government said, in the same document: "Despite the pronounced operational deficits and consequent worsening of the foreseen public subsidy, it is understood that the state of Cabo Verde should guarantee the continuity of the operation, boosting domestic tourism and the local economy, under penalty of serious economic and social consequences for the country."

The Cabo Verde deputy prime minister, Olavo Correia, previously guaranteed that the anticipation of the payment of compensation by the state to CV Interilhas, as the concessionaire of maritime transport, which operates with five ships, complied with the law and stems from the consequences of the Covid-19 pandemic.

"Fewer people are circulating, there are islands still with great human potential and that is in the framework of the emergency, the rate of manning will be reduced to cope with the contingency. All this will weigh on the balance sheet of the company and it will be the state, the taxpayers all, who will pay, of course," he said, questioned by parliamentarians, on this payment.

Lusa reported on 1 May that the Cabo Verde government authorised the payment of 100 million escudos (€900,000), to CV Interilhas, the concessionaire of maritime cargo and passenger transport, as an advance of a part (three months) of the compensatory compensation from the state.

The decision is contained in a resolution of the Cabinet meeting of 30 April, which explained that under the right conferred on the concessionaire to receive compensation for the obligation of the public service of maritime transport of passengers and cargo, CV Interilhas submitted the third request for payment of an advance on compensation, based on the performance of the company's operations in the first quarter of 2020.

The decision to advance part of the payment was made under the terms of the Concession Agreement, where the granting of the compensation is annual and the payment is made after prior submission to audit, competent external audit and approval by the industry regulator.

The resolution authorises the Autonomous Fund for the Development and Safety of Maritime Transport to make the payment of compensation to the concessionaire in the amount of 100 million escudos (€900,000), corresponding to the first quarter of 2020, of the operating activities of the company.

Cabo Verde has recorded an accumulated 1,553 cases of Covid-19 diagnosed since 19 March, with 19 deaths, but 729 have already been considered recovered.

The Covid-19 pandemic has caused more than 551,000 deaths and infected more than 12.12 million people in 196 countries and territories, according to a report by the French agency AFP.

PVJ/IMYN // ADB.

Lusa


Agency : LUSA

Date : 2020-07-11 09:30:00







 

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