​Puertos del Estado brings together all regulatory support available to allocate aid to the port community due to COVID-19

• This unprecedented and powerful document will alleviate the financial situation undergone by public workers, concessionaires and operators, in line with MITMA.
• Toledo personally forwarded his "Recommendations for Port Authorities on how to act in the COVID-19 crisis and measures adopted by Puertos del Estado" to all Port Authority presidents.
• It covers economic measures, a provisional decrease in mandatory minimum traffic, measures adopted by PE, recruitment, staff and administrative measures.

03-19-2020 (Ministry of Transportation, Mobility and Urban Agenda).

Puertos del Estado (PE) had drawn up a powerful document, in line with the Ministry of Transportation, Mobility and Urban Agenda (MITMA), to serve as a guide for Port Authorities when applying different types of aid to the entire port community (public workers, concessionaires and operators) as a consequence of COVID-19 containment actions decreed by the Spanish Government. "Recommendations for Port Authorities on how to act in the COVID-19 crisis and measures adopted by Puertos del Estado" will help mitigate its impact on the ports' economy.

Yesterday afternoon PE's president, Francisco Toledo, personally sent the document to 28 of the system's Port Authority (PA) presidents; PE's executive team then proceeded to subsequently distribute it amongst the port managements. This initiative seeks to allow all PAs to maximize their existing compensation measures, applicable to their port communities.

This unprecedented document gathers all current regulatory support in all applicable fields of competence, both at Port Authorities or Puertos del Estado, or a combination of both. These "Recommendations" follow policies approved by the Government of Spain and MITMA to try and mitigate the economic impact of the fight against the pandemic.

It literally states the following: "The object of these recommendations, issued pursuant to Article 18.1.n) of the Consolidated Version of the Act on State-Owned Ports and the Merchant Navy (TRLPEMM), is to clarify and set adequate measures in order to guarantee economic solvency, thus ensuring continued activity amongst port operators, mitigating the negative effects caused by the COVID-19 healthcare crisis, undertaking any procurement issues that have arisen; and to extend measures related to Port Authority staff".

It includes six sections: economic measures, provisional decrease in mandatory minimum traffic, measures adopted by PE, procurement, staff and administrative measures. Below is an extract of the document:

1.- Economic measures

Payment Deferral. A deferral has been granted for payable tax debt related to all statements-settlements of port fees, to be filed and paid after the effective date of Royal Decree 463/2020, of 14 March, whilst the emergency situation continues, provided that the requirements of such Royal Decree-Law are met.

Deferred payments of occupation fees. The boards of directors of each PA may decide on non-accruable interest or waive the need for guarantees.

The recommendation is for statements to be filed by applicable deadlines, to the extent possible, within the legal time limit provided.

2.- Provisional decrease in mandatory minimum traffic

A recommendation is made to decrease mandatory minimum traffic requirements, incorporated into concession titles, the object of which is affected by the COVID-19 crisis. It only refers to mandatory minimum traffic for 2020 and, consequently, will involve the Board of Directors' decision to provisionally and exceptionally change a concession title.

3.- Measures adopted by PE

In line with the measures adopted by some Port Authorities, the recommendation is to pay suppliers as soon as possible.

At the express request of each port authority, the first quarterly contribution in 2020 to Puertos del Estado, scheduled for next 31 March, is suspended. In a provisional manner, unjustified (and reimbursable) refunds will not be requested from the 2019 Interport Compensation Fund.

Puertos del Estado, pursuant to Art. 160.1 TRLPMM, will examine the possibility of granting loans to those port authorities with justifying needs, in relation to those expenses derived from measures to help port system workers, addressed at mitigating the effects of the COVID-19 crisis.

Puertos del Estado will open up a period allowing Port Authorities to change their business plans, in order to modify port fees in line with applicable rebates and accordingly adjust them to the current situation.

A recommendation has been made to assign the necessary funds to cover current expenses derived from the present crisis, in a justified manner and to the extent of each PA's possibilities.

The Permanent Port Services Market Observatory will follow up on port service operations and may propose any measures deemed adequate to ensure continued compliance with public service and maritime safety obligations.

4.- Procurement

For all those contracts tendered by the Port Authorities, with a bidding deadline falling between 16 and 31 March 2020, both inclusive, a 30 calendar day extension is recommended, as of the deadline scheduled in each specific tender announcement for submitting proposals, subject to the publicity required by law.

Article 34 of Royal Decree-Law 8/2020, of 17 March, on extraordinary urgent measures to face the economic and social impact of COVID-19, entitles contractors to certain indemnification payments for the loss and damage effectively suffered by a contractor whilst its contract is suspended. The provisions of Articles 208 and 239 of the Public Procurement Act will not apply. Furthermore, the foregoing will apply to any contracts executed within the scope of excluded sectors. Payable indemnification is foreseen in the Royal Decree-Law and will follow the procedure established therein.

5.- Staff

It is recommended that all measures to help workers in the general interest port system be implemented, following a request, to particularly include loans and anticipated wages, in order to mitigate any personal or family hardships that may be caused by Covid-19, in the terms established in local agreements. If necessary, such agreements should be amended to improve their terms, particularly as regards amount and repayment periods (essentially).

6.- Administrative measures

Anticipating that, as a consequence of the Covid-19 crisis, it may be necessary to immediately adopt extraordinarily urgent and necessary measures, entrusted to a Port Authority's Board of Directors as foreseen by law, Puertos del Estado considers it advisable for the boards of directors of Port Authorities, exclusively in these cases and only whilst the state of alarm decreed by the Spanish Government (and potentially extended) remains, to consider the possibility of delegating their competencies to their chairpersons, for future meetings.