Valencia Port spends €10 million to offset COVID-19 impact

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The Valencia Port Authority (PAV) has paid around €10 million ($11 million) as urgent and compensatory measures to mitigate the economic effects of COVID-19.

Specifically, since these measures were implemented, the PAV has streamlined the payment of €7.33 million ($7.93 million) to a total of 250 supplier companies to provide liquidity to companies that carry out work for the ports of Gandia, Sagunto and Valencia .

In total, the PAV anticipates that during 2020 it will advance payments to its suppliers amounting to 51 million euros. The objective of this initiative is to make weekly payments until the end of the Alarm Status in order to minimise the treasury difficulties that the PAV service providers or providers may have.

This measure, which was implemented on 19 March, has forced Valenciaport to establish internal mechanisms to process invoices as quickly as possible.

Likewise, to date, the PAV has also advanced €2.64 million ($2.86 million) in pending bonuses in 2019 to its clients and has implemented the reduction in rates derived from the Royal Decree-law of 21 April, 2020 that will mean a decrease in rates for this financial year for an amount of €6.2 million ($6.7 million).

For the calculation of the impact on the reduction of rates, the PAV has taken into account the effect on the rate of the T-1 ship, the occupancy rate, the adjustment for non-compliance with the minimum limit of the activity rate and the penalties for minimal traffic.

In total, it is expected that all these measures promoted by the PAV to mitigate the economic effects of COVID-19 will allow the port business network to have liquidity worth €57.2 million ($6.2 million) in 2020.

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