This is the result of a dispute over the length of the concession period. Pelindo II, which was appointed to build and operate the facilities, wants a 99-year concession but the Transportation Ministry says this is too long. It added that the government also wanted to prevent any monopolistic practices in the operation of ports, and said that officials wanted time to observe any environmental impacts from the port’s construction.
The ministry added that approving a 99-year concession would breach a government regulation from 2008 that says the government can only retain control of public infrastructure facilities for the up to 50 years. Pelindo II however insists that the long period of concession is fair due to the huge amount of investment involved.
Meanwhile Pelindo II has refused to even break ground on the project until the concession permits they want are secured.
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