The arbitration court ordered the state to pay STT 23.6 million euros and late fees as compensation for the impact of the Covid-19 pandemic and the unilateral extension of the concession agreement in 2021.
In a statement sent this Sunday to the Securities Market Commission (CMVM), CTT – Correios de Portugal announced that they have been notified of the decision rendered by the Arbitration Court of September 27 in relation to the proceedings initiated by the company in June 2021 against the Portuguese State .
The case in question sought compensation for losses resulting from the impact of the Covid-19 pandemic and the unilateral extension of the concession agreement in 2021.
“With regard to the consequences of the Covid-19 pandemic, the court unanimously ordered the State to pay CTT the sum of 6,785,781 euros, determined in accordance with judgments of equity and corresponding to the amount necessary to cover the “losses actually suffered by CTT” in 2020. “because it understands that the pandemic represents an abnormal change in circumstances that has had a negative impact on the execution of the Concession Agreement,” the statement says.
“With regard to the second dispute concerning the unilateral extension of the Concession Agreement, the Court unanimously concluded that the extension upset the financial balance of the Concession Agreement (to the detriment of the STT) and, as such, obliged the state to restore this balance, in respect of until 2021 upon payment of the amount of 16 769,864 euros.”
In short, according to the CTT, “the state was ordered to pay a total amount of 23,555,645 euros” and “to this amount will be added interest for late payment, the amount of which will still be determined by the Arbitration Court based on the decision of the parties.”
On June 11, the CTT announced the start of an arbitration process against the state, demanding a total of 67 million euros in compensation for the impact of the Covid-19 pandemic and a unilateral extension of the concession agreement.
“The CTT announces that on this day it initiated arbitration proceedings against the Portuguese State, acting as concessor, with the aim of assessing issues related to the sustainability of the current concession contract for universal postal services in 2020 and 2021,” according to a statement sent to the CMVM at the time .
The company demanded 44 million euros for the unilateral decision to extend the concession agreement and another 23 million euros as compensation for the consequences of the pandemic.
Author: Lusa
Source: CM Jornal
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