NEWS

Travel agencies are subject to new regulations (“Regulations”) adopted by Presidential Decree 72/24, of 15 March 2024. Below are the Regulations highlights:

• Angolan travel agencies can provide the following main services:

1. Organize touristic trips/tours;
2. Make reservations in hotels and other accommodation;
3. Sell transportation tickets;
4. Represent foreign travel agents;
5. Provide support and assistance to customers (airport pick up, transportation, hotel check-in/out, etc).

• Travel agencies can provide the following accessory services:

1. Obtain passports, visas or other travel documents;
2. Organize events such as conferences, seminars, congresses, summits, meetings, etc;
3. Sell event tickets;
4. Provide advice and assistance on foreign exchange transactions;
5. Assist customers in rent-a-car contracts;
6. Sell travel insurance;
7. Sell touristic guides;
8. Provide touristic transportation;
9. Assistance in museum, monuments and historical visits.

• Travel agencies are sub-classified as:

1. Travel and Tourism Agencies;
2. Tourism Agencies;
3. Tourism Operators.

• Travel agencies must obtain a license to be issued by:

1. The Ministry of Tourism in case of Travel and Tourism Agencies;
2. The Provincial Government in case of Tourism Agencies;
3. The Local Administration in case of Tourism Operators.

Licenses are valid for 5 years (renewable).

• Existing licenses will remain in force. However, they must be adjusted to the requirements of the new Regulations within 90 days.

• Travel agencies must post a bond to the licensing entity and take out insurance for their activities. The bond and insurance minimum amounts are set by separate instrument.

• Each travel agency must appoint a duly qualified “Technical Director” (Director Técnico). Technical Directors can only work for one travel agency.

• Licensing entities (Ministry of Tourism, Provincial Government of Local Administration) must keep an updated recorded of licensed travel agencies containing the following minimum information (among other elements):

• Travel agency name;
• Taxpayer number;
• Activity description;
• Location of head office and other offices;
• Names of directors and managers;
• Brand name(s) used by the agency;
• Amount and form of bond(s) provided.

• Travel agencies must have a dedicated offices(s), exclusively used for their activities. The licensing entity may authorize other activities to be carried out in the same office provided they do not pose a conflict with the travel & touristic activities.

• Travel agencies may have sale desks in hotels, airports, railway stations, port terminals, shopping centers or similar places.

• Duly identified staff of travel agencies may have access to the inside areas of airports, ports, railway stations, marinas, customs offices and similar places.

• All travel agency offices must have a “Complaints Book” which must be immediately made available to customers upon request.

• In case of international tourism trips, the travel agency must provide in writing the following information to its customers prior to departure:

• Any visa or passport requirements;
• Health requirements;
• Information on medical assistance in case of illness or accident.

This information may be included in the Trip Program.

• Visits to museums, monuments, classified places, historical centers, etc, must be accompanied by a touristic guide.

• Travel agency contracts must include the following minimum information:

1. Details of the travel agency;
2. Trip price (including reservation/upfront payment and subsequent payments if applicable) and date;
3. Trip itinerary and duration of each stay;
4. Participants;
5. Accommodation details;
6. Transportation details;
7. Visits, excursions and other services included in the price;
8. Optional services not included in price;
9. Trip insurance details;
10. Other specific items requested by customer and accepted by agency;
11. Customer complaint terms and maximum penalties to travel agency in case of breach of contract.

• Customer may be substituted by another person (who meets the trip requirements) until 7 days before the start of the trip (or 15 days in case of cruises or long-haul flights).  However, customer remains jointly liable for payment of the trip price.

• Customer may cancel the trip at any time prior to departure. The travel agency must reimburse customer of any amount(s) paid, less an amount not exceeding 15% of the price and any appropriate costs incurred by the agency.

• If customer is unable to complete the trip for reasons beyond his/her control, the travel agency must provide assistance to the customer until the point of departure or arrival.

• Hotels and other touristic establishments cannot engage in anti-competitive practices, among themselves or in collusion with travel agencies.

• Hotels and other touristic establishments must inform travel agencies in advance in case they post direct rates cheaper than rates charged to such agencies.

• Unless otherwise agreed between the hotel and the travel agency, payment by the travel agency must be made within 30 days of check-out.

• Hotel reservations may be cancelled by the travel agency without penalty if the cancellation is communicated in writing to the hotel:

1. 15 days in advance if more than 50% of the reservations are cancelled;
2. 10 days in advance if more than 25%, but less than 50%, of the reservations are cancelled;
3. 5 days in advance if less than 25% of the reservations are cancelled or in case of individual reservations.

Provided the above advance notice is observed, the hotel must refund the travel agency in full.

• The previous travel agency regulations contained in Presidential Decree 232/15, of 30 December 2015, are revoked.

Has been prepared by OneLegal , to which MC&A is a member.

Japanese Government has defined a new international cooperation model.

As part of such model, it has been announced that Japan will make a further 55.1 million dollars available to Mozambique; the funds will be allocated to the implementation of projects.

This initiative follows the Japanese will to resume loans to Mozambique by the end of the current year, provided Mozambican economic performance continues to improve.

During the past ten years and, in particular, after the implementation of the LNG projects, Japan has revealed to be one of the foreign countries which has invested more in Mozambique, namely in infrastructure projects.

Following the trend of recent times, the Port of Maputo continues to significantly increase its activity.
According to the Mozambican government, over the course of the next 25 years of the concession, it is expected that the port will produce profits of around eight billion dollars.
The concession was awarded in 2003 to Sociedade de Desenvolvimento do Porto de Maputo, known by the acronym MPDC.
MPDC is a private Mozambican company that is the result of a partnership between CFM (Caminhos de Ferro de Moçambique) and Portus Indico (which in turn is partly owned by DP World, based in Dubai).
The extension of the concession obliges MPDC to implement new infrastructures and improve some of the existing ones, and the corresponding Business Plan provides for an overall investment (partly borne by the concessionaire) of approximately two billion dollars.
On the other hand, direct jobs are expected to increase by around 1,000.
The constant increase in activity at the port of Maputo will ensure the implementation of the strategy to turn this port into one of the most important – and attractive – in East Africa.

After the approval of the Mozambique Sovereign Fund (FSM), through Law No. 1/2024, the Council of Ministers approved, on March 12, the Fund’s Regulation.

This regulation – fundamental for the application of the provisions of the aforementioned Law No. 1/2024 and for the start of the activity of the Sovereign Fund – establishes the procedures for the implementation and operationalization of the WSF.

The Regulation, in addition to establishing the governance guidelines (applicable to the bodies that participate in its decisions – the Assembly of the Republic, the Government, the Bank of Portugal, the Supervisory Committee, the Advisory Board, etc.) – defines all procedures in order to ensure the transfer of resources associated with present and future projects in the areas of liquefied natural gas (LNG) and oil.

The Regulation also establishes the circumstances in which, exceptionally, transfers of funds from the WSF to the State Budget may occur.

Finally, the Regulation provides for the establishment of an Investment Advisory Committee, composed of seven members; The creation of this Advisory Committee reinforces the Government’s concern to establish principles of transparency, legality, accountability, independence and prudence, which will be, among others, the pillars of the operation of the Sovereign Fund.

According to the Government’s own indication, the objective is for the WSF to start its operations as early as next April.

1. 1. Ministerial Diploma 119/2023, dated November 14, 2023, approved the first Mozambican Code on Renewables (the ”Code“);

      2. The Code establishes the technical requirements applicable to facilities generating electricity from renewable energy sources (“Renewable Energy Facilities”), the applicable principles during their operation and the technical conditions applicable under the Manager of the National Electric System (“Gestor do Sistema Eléctrico Nacional- GSEN”); (1.2.3.);

      3. The diploma complements the National Electric Net Code (“NENC”), approved under Ministerial Diploma 184/2023 of November 12, 2013 and must be interpretated having in mind some of the provisions established by the NENC;

      4. According to the legislator, the Code is based on the best international practices and adopted principles established in;

      a. the EU Regulation 2016/631 of April 14, 2016;
      b.  the South African “Grid Connection Code for Renewable Power Plants”, of 2019;
      c.  the Namibia Renewable Energy Grid Code, of 2020;
      d.  the Kenya National Transmission Code of 2016; and
      e.  and the Grid Connection Code of Malawi of 2019;

      5. The Code covers all Renewable Energy Facilities connected (using either synchronous or asynchronous technologies) to the National Electricity Transmission and Distribution Network;

      6. Renewable Energy Facilities that are outside of or not connected with the National Electricity Transmission and Distribution Network are not covered by the Code;

      7. The Code divides Renewable Energy Facilities into two categories:

      a. (Type 1) – facilities with a connected load higher than 75 kilowatts (“kW”) and lower than 15 megawatts (“MW”) and a voltage level equal or lower than 66KVkV; and
      b. (Type 2) – facilities with a connected load equal or above 15MW and a
      voltage level higher than 66KV;

      8. All new Renewable Energy Facilities must present a project for integration in the electricity network, to the GSEN for their analysis;

      9. The Code outlines specific principles that apply based on whether Renewable Energy Facilities fall into Category Type 1 or Type 2;

      10. It also provides specific guidelines for the operation of the Power Plants considered as relevant “ ( Power Plants with a capacity  higher than 1 MW are classified in the Code as “relevant”);

      11. The Code gives the GSEN the necessary powers to establish the principles that operators and users must follow in order to assure:

      a. the cybersecurity of the energy network; and
      b. the resilience of Renewable Energy Facilities to natural phenomena;

      12. The operator and the owner of a Renewable Energy Facility must execute a “connection contract“ (“contrato de ligação”);

      13. Any changes to the technical capacities of a Renewable Energy Facility or incidents at a Renewable Energy Facility must be notified to the operator;

      14. The operator (or any other entity designated by the Ministry of Energy and Mineral Resources) is responsible for assessing a Renewable Energy Facility’s compliance with legal and technical standards and issue a certificate of conformity Without this certificate, a Renewable Energy Facility cannot start operations; and
      15. The GSEN also plays a role in the conformity process by analysing all technical data, and requesting tests and simulation.

    

1.The GSEN is a public entity created under the Mozambican Electricity Code (Law 12/2022 of July 11, 2022) , with administrative and financial autonomy  and which has the functions of System and Market Operator. 2. The GSEN statutes and organic structure needs to be approved by the Mozambican Council of Ministers; until such approval takes place EDM (Electricity of Mozambique)- eventually assisted by other entities – will be the responsible for the future functions of GSEN. 3.It is expected some delay until GSEN statutes and structure are fully approved; this can create some confusion in the initial projects.

Following the government’s authorization to launch an international public tender for the concession of the new Luanda International Airport (Presidential Decree 273/23, of 10 November 2023), the main rules of such concession (the “Concession Rules”) have now been published by way of Presidential Decree 222/23, of 13 November 2023. Below is a summary of the Concession Rules:

• The activities covered by the concession will be specified in the Tender Specifications and in the future Concession Contract and will include inter alia the following:

1. Operation and maintenance of the airport terminal;
2. Operation and maintenance of the runways;
3. Operation, maintenance and expansion of the passenger terminal;
4. Operation, maintenance and expansion of the airport support facilities;
5. Operation and maintenance of the internal roads of the airside, parking and other areas within the concession perimeter;
6. Operation and maintenance of firefighting equipment and services;
7. Operation of the fuel farm, transport and supply of fuel to the aircraft;
8. Assistance to stationed aircraft, including catering, ramp or other services to aircraft between flights (including facilitating such assistance to be provided by third parties);
9. Operation and maintenance of all equipment to be included within the perimeter of the concession.

• The perimeter of the concession will be defined in the Tender Specifications and future Concession Contract.

• The future airport operator (“Concessionaire”) may set up its offices within the airport premises in its discretion. The Concessionaire may use part of the ENNA, EP (Angolan air navigation company) building subject to a specific agreement.

• The “concession establishment” includes all assets and rights related to the concession, including the following:

1. Moveable assets, including equipment and machinery;
2. Real estate assets;
3. Improvements to the above;
4. Contracts related to the concession, including employment contracts.

• The Concessionaire shall make the following payments to the state:

1. Upfront bonus payment;
2. Annual rent in an amount to be set in the Tender Specifications and future Concession Contract.

• The concession term is 25 years, renewable for additional 15 years.

• The Concessionaire shall not be entitled to any compensation for handing over the assets to the state at the end of the concession, except as follows:

The Concessionaire shall be compensated for the net accounting value of
the assets acquired or built within the last 5 years of the concession term
subject to all of the following conditions being met:

1. Concessionaire has fully complied with the Minimum Technical Standards attached to the Concession Contract;
2. The asset is essential to the airport functioning;
3. The asset is allocated to the concession;
4. The state has authorized the respective cost;
5. The cost was incurred in the 5 years prior to the asset being handed over to the state;
6. Termination of the concession was not due to Concessionaire’s fault.

The state may off-set any amounts owed by the Concessionaire against
this compensation, including rentals in arrears, fines or interest penalties
imposed on the Concessionaire, or debts to suppliers, banks, employees,
etc.

• In order to participate in the public tender bidders must purchase the “tender pack” which includes the Tender Program, the Tender Specifications and ancillary documentation. This is subject to payment of a fee to be set by the Ministry of Transports.

• Disputes between the state and the Concessionaire shall be referred to arbitration in the terms of the Tender Specifications and future Concession Contract.

• Angolan law will be the governing law of the Concession Contract.

• The Concession Contract will obey the Public Contract Law and will take the form of a public deed (escritura pública).

• The concession will be subject to:

1. The Concession Rules specifically;
2. The general regime for airport concessions established in Presidential Decree 250/20, of 1 October 2020;
3. The Public Contract Law; and
4. The Concession Contract.

Has been prepared by OneLegal , to which MC&A is a member.