March 19, 2020 (Ministry of Transport, Mobility and Urban Agenda). State Ports (Puertos del Estado) has produced a comprehensive document, in collaboration with the Ministry of Transport, Mobility and Urban Agenda (MITMA), to guide port authorities in implementing various forms of support for the entire port community (public employees, concessionary companies, and operators) in response to the COVID-19 containment measures decreed by the Spanish Government. 'Recommendations for Port Authorities in the Face of the Crisis Created by COVID-19 and Measures Adopted by State Ports' will help mitigate the impact on the port economy.
The president of PE, Francisco Toledo, personally sent the document yesterday afternoon to the 28 presidents of the Port Authorities (AAPP) within the system. PE's management team then distributed it to the port authorities. This initiative will enable all Port Authorities to maximize their existing compensation measures applicable to their port communities.
This unprecedented document compiles all current regulatory support from the various relevant jurisdictions, including port authorities, State Ports, and a combination of both. The 'Recommendations' build upon the policies approved by the Government of Spain and the Ministry of Transport, Mobility and Urban Agenda (MITMA) to help mitigate the economic consequences of controlling the pandemic.
The text states: “The purpose of these recommendations, issued under Article 18.1.n) of the TRLPEMM, is to clarify and establish the most relevant actions in order to guarantee economic liquidity that ensures the continuity of the activity of the operators involved in the ports, mitigating the negative effects attributable to the COVID-19 health crisis; address issues that have arisen in the area of contracting; and extend the measures in relation to the staff of the Port Authorities.”.
It includes six sections: economic measures, temporary reduction of minimum traffic requirements, measures adopted by the European Parliament, recruitment, personnel, and administrative measures. This is an excerpt from the document:
1.- Economic measures
Payment Deferrals. Deferral of the payment of the tax debt corresponding to all those declarations-settlements of port fees, whose deadline for submission and payment ends from the date of entry into force of Royal Decree 463/2020, of March 14, and while the state of emergency lasts, provided that they meet the requirements indicated in the aforementioned Royal Decree-Law.
Deferred payments for occupancy fees. In the agreements to be adopted by the boards of directors of each AP, consideration may be given to not charging interest or requiring guarantees.
It is recommended that the maximum time limits allowed for liquidations be used within the legal limit permitted for carrying them out.
2. Temporary reduction of the requirement for minimum traffic levels
It is recommended that the minimum traffic requirements stipulated in concession agreements be reduced if their purpose has been affected by the COVID-19 crisis. This only refers to the minimum traffic requirements for 2020; therefore, it would be a temporary modification of the concession agreement, granted on an exceptional basis by the Board of Directors.
3. Measures adopted by PE
In line with the measures adopted by some port authorities, it is recommended to reduce the payment period to suppliers as much as possible.
At the explicit request of each port authority, the first quarterly contribution for 2020 to State Ports, scheduled for March 31, will be suspended. As a temporary measure, the repayment of unjustified amounts (to be reimbursed) from the 2019 Interport Compensation Fund will not be required.
Puertos del Estado, under the protection of art. 160.1 of TRLPMM, will study the possibility of granting loans to port authorities that justify needing them, especially in relation to those expenses derived from the measures of aid to the workers of the port system, aimed at mitigating the effects of the COVID-19 crisis.
State Ports will open a period for modifying the business plans of the Port Authorities to modify the discounts applicable to port fees and adapt them, where appropriate, to the current situation.
It is recommended to mobilize the necessary funds to cover current expenses arising from the current crisis, in a justified manner and to the extent possible for each AP.
The Permanent Observatory of the Port Services Market will monitor the operation of port services and may propose any measures it deems appropriate to adopt in order to maintain public service obligations and maritime safety.
4.- Contracting
It is recommended that for all contracts tendered by the Port Authorities and whose deadline for submitting bids falls between March 16 and 31, 2020, inclusive, this deadline be extended by 30 calendar days from the date indicated in each specific tender call, as the limit for submitting proposals, giving it the regulatory publicity.
Article 34 of Royal Decree-Law 8/2020, of March 17, on urgent extraordinary measures to address the economic and social impact of COVID-19, recognizes the contractor's right to receive certain compensation for damages actually incurred during the contract suspension period. The provisions of Articles 208 and 239 of the Public Sector Contracts Law shall not apply. This provision shall also apply to contracts entered into within the excluded sectors. The compensation amounts are those established in the Royal Decree-Law and are calculated according to the procedure it sets forth.
5.- Personnel
It is recommended that, upon request, all available support measures for workers in the port system of general interest be implemented, especially loans and salary advances, to alleviate any personal or family financial difficulties they may experience due to Covid-19, in accordance with the terms established in local agreements. Where appropriate, consideration should be given to modifying these agreements to improve the conditions, primarily regarding the amount and repayment period.
6.- Administrative measures
In anticipation that, as a consequence of the crisis caused by Covid-19, it may be necessary to adopt immediately measures of extraordinary urgency and necessity that fall under the competence of the Board of Directors of the Port Authority in accordance with legal provisions, State Ports considers it appropriate that the boards of directors of the port authorities, for such cases exclusively and only while the state of alarm decreed by the Government of the Nation remains in force (including any possible extensions), may consider, if they meet, delegating their competence to their presidents.
