PLMJ & Deloitte advise on Cabo Verde airports concession

PLMJ and Deloitte have advised the State of Cabo Verde on what was the country’s first concession for a major public infrastructure and is part of a wider strategy by the country’s government to liberalise its large public infrastructures. The aim is to create an aeronautical hub in Cabo Verde, with its centre on the island of Sal.

The concession contract for the airport public service was awarded to the Vinci group, including a 30% stake in ANA – Aeroportos de Portugal. It involves the 40-year management of four international airports and three aerodromes, with an initial investment of €80 million and an estimated total additional investment of over €900 million.

PLMJ advised the State of Cabo Verde throughout the project, including the drafting of the legislative and regulatory projects underlying the concession, as well as the negotiations with the Vinci Group and the conclusion of the contract necessary for the operation. The negotiations and drafting of the contract in question were particularly complex both because of their nature and also because of the pandemic situation which directly impacted on this industry. It was possible to reach consensus on a number of innovative mechanisms in concession contracts of this nature.

On PLMJ’s side, the operation was led by Diogo Duarte de Campos (pictured left), a partner in the firm’s Public Law practice, and by Carla F. Machado (pictured right), a managing associate from the same practice. The team also included Inês Pinto da Costa, a partner in the corporate M&A practice, Nuno Ferreira Morgado, a partner in the Employment and Labour practice, and Hugo Aparício, an associate in the Public Law practice.

Deloitte supported the State of Cape Verde in the structuring and negotiation of the concession of the country’s airport infrastructures, including the strategic, operational and financial component.

Michael Heron