Communiqué from the Council of the Government - Communication

The Council of the Government, which met on July 23, 2024, in Santa Cruz da Graciosa, adopted the following measures:

1. Approve the Resolution recognising the "NUVEM" project, promoted by the company Angler Fish Services, Unipessoal, Lda. as being of significant public interest, with regard to connecting the Azores directly to the main system of Google's new intercontinental submarine cable between the United States of America and Europe.

The Regional Government received a letter from Angler Fish Services, Unipessoal, Lda. - a Portuguese subsidiary of the multinational parent company Google - with a declaration of interest to recognise the "NUVEM" project as significant public interest.

The project presented involves the construction of an additional branch to directly connect the Azores, via the island of São Miguel, to the main system of Google's new intercontinental submarine cable, which aims to connect the United States of America to Europe.

In addition, a Cable Lashing Station (CLS) will be installed in São Miguel, which will house equipment for terminating the submarine cable, power supplies and other technical equipment.

With this new digital connection from the Azores to the world - directly to Europe and the US - via this new submarine cable, the installed data transmission capacity in the Region is significantly increased, which is essential to support the continued growth in demand for digital services.

Better digital connectivity facilitates teleworking and distance learning, which is especially important in island regions such as the Azores, where geographical distance can limit access to employment and education opportunities.

In addition, a high-quality digital connectivity infrastructure makes the Azores more attractive to potential investments, especially in the technology and digital services sectors, for which the international operation of the multinational Google from the Azores could be decisive.

This potential for attracting external investment is essential for creating skilled jobs, a more robust technological, research and development ecosystem and, ultimately, demographic growth in the Region.

2. Approve the Resolution authorising the procurement of airport security services for 36 months at a maximum cost of €3,100,000.00, plus VAT at the legal rate in force.

Lajes Civil Airport is one of the main infrastructures supporting air mobility and the economic development of the Region, particularly Terceira Island.

Ensuring safety in airport infrastructures is a key element, guaranteeing the protection of passengers, workers and goods. This commitment is essential to maintaining the regular and safe functioning of airport operations, promoting a reliable and safe environment for all citizens using the airport.

With a view to strictly complying with national and international rules and regulations governing the airport sector, the Lajes Civil Airport intends to procure specialised security services.

The Regional Government wants to establish information and communications technologies as a lever for the continuous improvement of service provision. It has been implementing a strategy to provide the Regional Public Administration's services with modern tools, which are one of the pillars of its reform and modernisation, with a direct impact on the services provided to citizens and companies.

The "E-Hub" - Regional Public Administration's interoperability platform project is planned under the Recovery and Resilience Plan - Azores. It will boost interoperability between the Regional Government's current applications and those to be implemented, including the new Regional Public Administration services portal.

The interoperability to be achieved by the "E-Hub" platform will boost the reuse and repurposing of services, the specialisation of teams, the standardisation of the way systems integrate and communicate with each other, making them available and fostering their reuse, as well as optimising integration time and effort.

In this context, it is necessary to authorise expenditure and procurment of the supply, installation and support of the "E-Hub" platform.

4. Approve the Resolution authorising the revision of the investment cooperation-value contract signed between the Regional Government and the Santa Casa da Misericórdia de Santa Cruz da Graciosa, granting a contribution of up to €1,418,100.00, with the aim of ensuring the necessary funding for the refurbishment of the former Health Centre to adapt it into a Residential Structure for the Elderly in the municipality of Santa Cruz da Graciosa, Graciosa Island.

The Santa Casa da Misericórdia de Santa Cruz da Graciosa has developed various activities of social relevance, which deserve the recognition of the Regional Government and its willingness to maintain and increase the technical and financial support provided.

There is a need to continue supporting the development of social support activities, through the creation and refurbishment of facilities that provide quality social responses to support the elderly in the municipality of Santa Cruz da Graciosa, Graciosa Island. This includes the remodelling of the facilities of the former Health Centre in that municipality to be adapted into a Residential Structure for the Elderly.

It is necessary to reassess the investment components, particularly the budget estimate, due to the impact of the global energy crisis and the Ukraine war. This resulted in sharp rises in the prices of raw materials and labour, especially in the construction sector, causing serious impacts on the economy.

Under the reprogramming of the RRP, the Investment for the "Modernisation and expansion of the network of residential facilities for the elderly" was introduced into the Social Responses Component, which sets the financial framework for this programme.

5. Approve the Resolution authorising the expenditure and procurement of the works contract for the design and construction of the modular hospital adjacent to the Divino Espírito Santo Hospital (HDES), through a direct award procedure, with a base price of €12,000,000.00, plus VAT at the legal rate in force, with a maximum completion period of 90 days.

The resumption of operations of the HDES presupposes the identification and adoption of a series of deferred reaction measures to immediately respond to the malfunctions caused by the fire that broke at that hospital and in the Regional Health Service. It also requires measures to repair the existing material damage, either by replacing it or adopting a transitional operating model for certain services.

These measures include, in the immediate term and in the shortest possible time, the acquisition and assembly of a modular structure with a configuration that allows emergency situations to be dealt with (Modular Hospital). This will allow the various specialities practiced at HDES to resume their activities, with the main premise being spatial functionality and the maximum speed of implementation of the building.

7. Approve the Resolution authorising the Regional Secretariat for Agriculture and Food to set up financial support to be granted to active farmers who benefited from the cattle slaughter premium under the POSEI programme in 2021.

The bovine slaughter premium was one of the measures established in 2021, which benefited active farmers who had cattle on their farm and slaughtered them in slaughterhouses within the Region.

The current economic situation is still suffering from the effects of the Covid-19 pandemic, the war conflict between Russia and Ukraine, and the significant increase in the cost of production factors.

Cattle farming remains one the most representative agricultural sector in the Azores, and is also important for human nutrition and various related economic sectors.

The slaughter of cattle in the Region is favoured over the export of live animals, especially in terms of animal welfare.

There is a need to increase the support granted to farmers who benefited from the cattle slaughter premium in 2021.

8. Approve the Resolution determining the maintenance of the aid to be paid to passengers resident in the Autonomous Region of the Azores - "Azores Fare" - for 2024.

The Government has decided to maintain the "Azores Fare," a measure with a huge positive impact on promoting the movement of people and goods between the islands, generating new economic dynamics and strengthening the Region's social and territorial cohesion.

Since its entry into force in June 2021 until May 2024, the number of passengers using "Azores Fare" tickets in the Region reached 919,463.

9. Approve the Resolution determining the maintenance of the aid for inter-island transport of sick pets, regardless of the aerodrome or airport of origin and destination, for duly proven medical reasons, for 2024.

10. Approve the Resolution determining the maintenance of  support for 2024 regarding the provision of the "Free Social Fare" by companies operating intercity and municipal suburban, public, regular and collective passenger transport services. 

The Free Social Fare is awarded to individuals subject to Personal Income Tax (IRS) whose household has an average gross annual income that falls within the first and second income brackets.

The Free Social Fare is also available to students who, while not entitled to the School Pass, attend a school establishment in the Region other than the one serving the area where they live, for justifiable reasons. 

11. Approve the Resolution authorising the amendment to the programme contract signed between the Autonomous Region of the Azores and Portos dos Açores, S.A. regulating the promotion of the construction of the new Lajes das Flores port.

This amendment to the programme contract signed between the Autonomous Region of the Azores and Portos dos Açores entails an increase in the Region's financial commitment to the amount of €35,830,000.00.

With this increase, the amount of the financial contribution for which the Region is responsible under the programme contract to promote the construction of the new Lajes das Flores port totals €226,576,100.00. 

12. Approve the Resolution authorising the amendment to the programme contract signed between the Autonomous Region of the Azores and Portos dos Açores, S.A. to regulate the promotion of the repair work to the jetty at the Lajes do Pico port, following the damage caused by Hurricane Lorenzo.

The generalised increase in prices, due to the crisis in materials faced worldwide since the beginning of the Covid-19 pandemic, and severely aggravated by the war situation in Ukraine, has led to an increase in the value of the price revisions far greater than initially estimated.

Accordingly, it is necessary to adjust the Region's contribution under the aforementioned programme contract, as it is insufficient, and to reprogramme it financially.

This amendment to the programme contract in question involves an increase in the Region's financial commitment to the amount of €2,300,000.00. 

13. Approve the Resolution authorising the opening of a public tender for the signing of a contract for the acquisition of three sorting lines for undifferentiated waste and selective collection, to be allocated to the Waste Processing Centres on the islands of São Jorge, Graciosa and Santa Maria, as well as for the acquisition of equipment to complement and integrate an existing processing line for undifferentiated waste, to be allocated to the Waste Processing Centres on the islands of Pico and Faial, with a base price of €2,565,000.00.

14. Approve the Resolution authorising the global transfer of the maximum amount of €600,000.00 to the Azores Regional Civil Protection and Fire Service in 2024 to cover the increase in the base salary of firefighters belonging to humanitarian associations of volunteer firefighters in the Autonomous Region of the Azores.

Ordinance 625/2023 revised the working conditions for firefighter officers and firefighters at the service of Humanitarian Associations of Firefighters in the Azores.

This legislative amendment, introduced in 2023, arose from the need to revise the base salary of firefighters belonging to humanitarian associations of volunteer firefighter associations in the Region to an increase of at least 8% on the guaranteed minimum monthly pay applicable to the Azores for 2023. The Regional Government assumed the commitment to support, in 2023, the difference in the amounts related to the processing of salaries for firefighter officers and firefighters. 

However, given the financial conditions of the Humanitarian Associations of Volunteer Firefighters in the Region, it is imperative to maintain this support for 2024.

This resolution also approves the regulation granting financial support to cover the increase in the base salary of firefighters belonging to humanitarian associations of volunteer firefighters in the Region.