In a statement sent today to the Securities Market Commission (CMVM), CTT – Correios de Portugal informed that they were notified of the ruling handed down by the Arbitration Court, dated September 27, relating to the process initiated by the company in June 2021 against the Portuguese state.
In the case in question, compensation was requested for losses arising from the impact of the Covid-19 pandemic and the unilateral extension of the concession contract in 2021.
“Regarding the impact of the covid-19 pandemic, the Court unanimously condemned the State to pay CTT the amount of 6,785,781 euros, determined according to equity judgments and which corresponds to the amount necessary to cover the “losses actually suffered by CTT” in 2020, as it understands that the pandemic constitutes an abnormal change in circumstances that had a negative impact on the execution of the Concession Contract”, can be read in the statement.
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“Regarding the second dispute relating to the unilateral extension of the Concession Contract, the Court unanimously concluded that the extension disturbed the financial balance of the Concession Contract (to the detriment of CTT) and, as such, ordered the State to restore that balance, relating to the year 2021, upon payment of the amount of 16,769,864 euros”.
In short, according to the CTT, “the State was ordered to pay the global 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, following the parties’ decision”.
On June 11, CTT announced the start of an arbitration process against the State, claiming a total of 67 million euros in compensation for the impact of the covid-19 pandemic and the unilateral extension of the concession contract.
“CTT informs that on this date it initiated an arbitration process against the Portuguese State, in its capacity as grantor, with the aim of assessing issues related to the sustainability of the current universal postal service concession contract, in the years 2020 and 2021” , according to the statement sent to the CMVM at the time.
The company claimed 44 million euros for the unilateral decision to extend the concession contract and a further 23 million euros in compensation for the impacts of the pandemic.
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