Cabo Verde Government wants to complete airport concession programme this year

14 March 2019

The Cape Verdean government plans to finalise the concession programme for the country’s airports in 2019, once the TACV – Cabo Verde Airlines privatisation process has been completed, the country’s prime minister said in Lisbon on Wednesday.

Ulisses Correia e Silva also told Portuguese news agency, Lusa, that the privatisation of TACV is only “one element of a much larger programme,” which involves the development of a platform on Sal Island, the concession of airports “this year” and concession of handling services.

The goal is to transform Cabo Verde into a “great air platform connecting Africa, the Americas and Europe,” that will have an impact on the economy and the tourism sector, he said.

The minister of Tourism and Transport, speaking in parliament, said that the alternative to the sale of 51% of Cabo Verde Airlines to strategic partner Loftleidir Cabo Verde would be liquidation.

José Gonçalves also said that liquidation, according to calculations made, would cost Cabo Verde around 20 billion escudos (181 million euros).

After a year and a half under a management contract, the state sold 51% of TACV to Lofleidir Cabo Verde for 1.3 million euros, and the Icelandic company will invest a further 6 million euros to capitalise the company, according to the Cape Verdean government.

Of the remaining 49% capital, 10% will be set aside for Cape Verdean emigrants and workers and 39% will be floated on the stock exchange.

With around 500 workers, TACV cost taxpayers 1 million euros per month and, in 2015, had debt of more than 100 million euros, according to the government. (Macauhub)