EU confirms aid to ENVC

The European Commission has decided to allow an extension of the delivery date for two product/chemical tankers built at Estaleiros Navais de Viana do Castelo (ENVC), Portugal in derogation from the EC Treaty state aid rules on shipbuilding. As a general rule, shipbuilding contracts signed before the abolition of operating aid in 2000 had to be executed at the latest by the end of 2003 in order to benefit from such aid, which could amount to up to 9% of the contract value, but derogations can be allowed under strict conditions. Due to the technical complexity of the construction of these two ships, the Commission decided that the strict conditions are met and approved an extension of the delivery dates.

Portugal requested the Commission to grant an extension of the date for the delivery by ENVC of two product /chemical tankers. The vessels were originally due to be delivered in October and November 2003. On this basis, Estaleiros Navais de Viana do Castelo was awarded 9% contract-related operating aid by the Portuguese authorities for the building of the vessels.

The Commission?s investigation revealed that the technical complexity of the project justified the extension of the delivery deadline. Consequently, the Commission decided to authorise an extension of the delivery date, to 29 October 2004 for one tanker and to 5 February 2005 for the other.