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US Ambassador George Glass warned that Portugal “now has to choose” between the “partner” China or the US “allies” in processes such as 5G, the entry of ACPC into Mota-Engil or the construction of the terminal. of Sines.
In an interview published on Saturday by the Expresso newspaper, George Glass said that Portugal “has to choose” between “working with security partners, allies, or working with economic partners, the Chinese,” leaving possible changes on the table. relationship with Portugal at the Defense level and, eventually, the political relationship between the two countries.
Among the “elections” that the Portuguese Government must take – which, however, through the voice of the Minister of Foreign Affairs, Augusto Santos Silva, has already replied that “in Portugal the decisions are made by the Portuguese authorities” – the ambassador pointed out the decisions regarding the Chinese entry of Huawei into the 5G and ACPC network in the capital Mota-Engil, having also warned that if the Chinese win the tender for the Vasco da Gama terminal in Sines, the American natural gas will have to seek other alternatives.
Admitting that “Portugal inevitably ends up being part of the battlefield in Europe between the United States and China,” with whom it “has done business for centuries,” George Glass argues that “this is not the same China with which [o país] has been occupied in the last 500 years “but” a new China, with long-term plans to accumulate evil influence through the economy, politics or other means. “
Among the various processes mentioned by the ambassador are:
EDP
The attempt by the Chinese China Three Gorges (CTG) to assume a controlling position in EDP – with a takeover bid that failed in the meantime – was singled out by the US ambassador in Lisbon as “the first” battle. in Portugal of the war between the USA and the dishes.
At present, CTG stands out as the main shareholder of EDP, with 21.55% of the capital, followed by the Spanish from Oppidum Capital (7.20%) and the Americans from BlackRock (4.16%), having seen In 2019, the Public Tender Offer (OPA) that it launched on the Portuguese electricity company was canceled.
CTG joined EDP in 2012, acquiring a 21.35% stake in the privatization of the company for 2,690 million euros. In May 2018, it launched a takeover bid for energy, with a consideration of 3.26 euros per share, which, however, would be disputed almost a year later (in April 2019) by EDP shareholders, as they did not modify the bylaws to terminate to the limitation of voting rights to 25% of the capital.
However, the executive president of EDP, António Mexia, nevertheless assured that the association with CTG was “important and to be maintained” and that, “regardless of the results of the offer”, the Chinese group will continue to be “the strategic investor of EDP ”.
Despite some capital disposals that have occurred since then, the largest contribution to the recent capital increase of the Portuguese electricity company came precisely from CTG, which bought more than 66 million shares for a total of about 220.3 million euros, and, with a subsequent acquisition of the rest of the shares, on a pro rata basis, it strengthened its position to 21.55%.
EDP’s renewable energy division, EDP Renováveis, has a strong presence in the North American market, but announced on September 3 that it had sold an 80% stake in its US wind and solar portfolio. worth around 570 million euros, which justifies the agreement with the company’s “asset rotation” strategy.
Mota-Engil
George Glass admits, in the interview with Expresso, possible “sanctions” for Portuguese companies involved in business with Chinese counterparts, pointing to the case of the Mota-Engil group, which accuses of having sold 30% of “for 30 silver coins”. its capital to the China of China Communications Construction Company, Ltd. (ACPC).
“It is a high-quality flag company that now has a great influence from a foreign entity. If they are going to do business in Angola, Mozambique or Mexico, these countries have respect for a first-rate Portuguese company. But now they must be aware of that there is an evil influence that may have different intentions in relation to the business, “said the diplomat.
On August 27, the Portuguese group Mota-Engil announced that it was in the “final phase” of negotiating a strategic partnership and investment agreement with ACPC, which will retain 30% of the company after a capital increase.
Mota Engil is a partner of ACPC in the construction of the rail infrastructure of the Mayan Train, in Mexico, in what is “the largest contract ever carried out in Latin America.”
According to the group, the ACPC must undertake to subscribe a relevant participation in a capital increase of up to 100 million new shares that will soon be submitted for deliberation at the General Meeting.
“After this capital increase, it will be attributable to MGP [Mota Gestão e Participações] a participation of around 40% of the share capital of Mota-Engil, shows total commitment and alignment with its historical position in the group, and the new shareholder will reach a participation slightly higher than 30% ”, he said.
5G auction
The issue of fifth generation (5G) mobile networks has been at the center of the exchange of accusations between China and the United States, and the European Commission recommended that member states apply “relevant restrictions” to providers considered “high risk “. “.
Ambassador George Glass has already left in the air any negative impact on bilateral relations Portugal / USA. Yes, within the framework of the 5G spectrum auction scheduled for the last quarter of this year, the Chinese Huawei begins to supply this 5G technology to communication companies in Portugal.
These are decisions that Portugal will have to make. We would prefer something like the UK, only with reliable providers on the 5G network. It is very important, because we know that 5G encompasses everything: whether in the center or in the network, it is within the system. That is why we would prefer that there was no Huawei equipment in the 5G network, but we have to wait for the work to continue to understand, “Glass told Expresso.
The auction for the allocation of 5G licenses has been discussed since 2019 and its completion was scheduled for April of this year, ending up being suspended by the telecommunications regulator due to the pandemic.
The process was resumed in July, with the completion of the public consultation procedure for the auction regulation project, while the National Communications Authority (Anacom) announced that the auction will take place between October and December, with the assignment of rights of use. frequencies scheduled for January / February 2021.
New Sines port terminal
The new Sines terminal was another of the investments mentioned by the US ambassador, who described the Portuguese port as “incredibly strategic”, being the “closest deep-water port to the United States.”
George Glass argued that “there is a western company operating and building the terminal [Vasco da Gama]”, warning that if the choice falls on a Chinese company, it would affect” the American vision “of” what Sines can become “in the US liquefied natural gas distribution process.
The Port of Sines is currently in a phase of infrastructure expansion, with the expansion of Terminal XXI (containerized, managed by the concessionaire PSA Sines) and also the construction of a second terminal for containerized cargo, called Terminal Vasco da Gama. .
The deadline for submitting proposals in the framework of the international public tender for the construction of this second terminal was extended until April 6 of this year, with an investment of 642 million euros in a new structure with an annual handling capacity of 3.5 million euros. TEU and a 1,375-meter-long dock with three simultaneous berths for the world’s largest ships.
In the initial calendar, the award of the project (construction and exploration) was scheduled for the last quarter of this year and the start of works in 2021.
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