Minister Lee gives an update on INSO

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Minister of Health, Social Affairs and Labour Emil Lee

 

PHILIPSBURG, Sint Maarten — The project team for the new St Maarten General Hospital continues to work on the execution of the Hospital construction project.  “We maintain a close and positive contact with the three Extraordinary Commissioners managing the financial restructuring of Inso and its parent company Condotte.

Based on correspondence between the new hospital project team and the Commissioners of Inso, we have agreed that a delegation from St Maarten will travel to meet in Italy early next year with the objective to discuss the future plans of Inso and how the financial restructuring efforts could impact the project.

We have a good working relationship with Inso and remain focused on ensuring the hospital project continues with all due diligence, proper guarantees and assurances.  Reports that I have already been to Italy to meet with Inso are absolutely false.” stated Minister Lee

The European Commission has recently approved, according to state aid rules, a state guarantee of 190 Million Euros to Condotte under its Extraordinary Administration.  “We believe this is a clear indication that both the European Union and Italian government are committed to supporting Condotte while it goes through its financial restructuring process.  In our meetings with Inso, they will explain how this and other financial measures may impact the project.  The delegation from St Maarten that will be meeting with Inso are very clear that all assurance and comfort must be in place before commencing the project.”

The project team for the hospital project is working closely with the financiers for the project, keeping them well informed as to the status and progress of discussions with Inso.

The project team and financiers share the perspective that until Inso is able to provide proof and comfort that the project can proceed with appropriate guarantees for a smooth process with continuity, no funds will be released.


https://www.repubblica.it/economia/finanza/2018/12/12/news/condotte_via_libera_al_salvataggio_dalla_ue-214075001/

English Translation 

Conducted, go-ahead to rescue from the EU

Competition Commissioner Margrethe Vestager explained that a sudden exit of Condotte from the market would put many companies in trouble and lead to the loss of many jobs. Ok to the guarantee of the Italian State

MILAN – The European Commission has approved, according to state aid rules, the Italian project for the granting of a state guarantee of € 190 million to Water Pipelines under Extraordinary Administration. The measure will enable the construction company to meet its urgent need for liquidity while limiting distortions of competition.

Competition Commissioner Margrethe Vestager has explained that a sudden exit of Condotte from the market would put many companies in difficulty and lead to the loss of many jobs: “The Italian rescue aid approved will allow Condotte to continue its activities and avoiding immediate delays in the execution of important infrastructural works, and will give the company administrators the time necessary to bring it back to profitability “.
Condotte d’acqua spa in Extraordinary Administration is the third largest construction company in Italy with over one thousand employees: it operates in the construction sector, creating, among other things, infrastructure works such as roads, high-speed railways, projects in the energy sector and other large infrastructure projects. At present the company finds itself in financial difficulties due to internal and external factors, and in particular to the economic context of construction companies that participate in public works.

In Italy, the commission notes, there has been a decline in public investment in the civil engineering sector between 2008 and 2015, delays in payments by public administrations are a persistent problem and procedures for the awarding and settlement of disputes with the contracting authorities they require very long times. The combined action of all these factors puts the Italian construction companies to the test. On 30 November 2018 Italy had notified in Brussels its intention to grant a temporary guarantee of EUR 190 million on loans and bonds that will allow the company to meet its liquidity needs for the next six months at a rate of appropriate interest. The EU executive concluded that the

In addition, ‘Condotte plays an important role in the construction sector not only because of the huge number of direct jobs it creates, but also because of the much larger number of indirect jobs and trade links that it maintains. with subcontractors and suppliers. Finally, the company’s liquidity needs for the coming months are based on reasonable assumptions. On the other hand, ‘Italy undertook to notify the committee, within six months, of the termination of the state guarantee, the liquidation of the company or a restructuring plan. “Hence the positive conclusion: the second measure the European antitrust ‘ complies with state aid rules as it will allow pipelines to continue their activities and avoid delays in carrying out public infrastructure projects. Moreover, the short duration of the measure will minimize the possibility of distortions of competition due to state support “.