NEWS

MOZAMBICAN NEW ELECTRICITY LAW

The Mozambican Assembly of the Republic approved a new electricity law (Law 12/2022), which will be in force as from October 10.

The main purpose of this law is to adapt the existent legislation (namely Law 21/97, which is revoked) to the actual Mozambican reality and, in particular, to facilitate the development of renewable energy projects and the secondary market.

Some of the key aspects of the law are:

1. It gives the Council of Ministers the power to approve any electricity projects with 100MW or more;
2. It nominates ARENE ( the Energy Regulatory Authority) to supervise, regulate and oversee the electric energy activities;
3. It creates a new entity ( “Gestor do Sistema Eléctrico Nacional”), which will be responsible for the management of all the national electric grid; the by-laws and specific competences of the new entity will be approved by the Council of Ministers;
4. It regulates the conditions, criteria and procedures for the assignment of new concessions;
5. It exempts from concession all private projects which are for individual consumption only and will not supply third parties;
6. It defines the conditions and criteria for the termination of the concessions, setting of consumption tariffs and electricity prices;
7. It defines the conditions under which the transfer of existing projects can take place.

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LAW ON STATE AND PUBLIC COMPANIES RESPONSIBILITY

The recently published Law nº 30/22 0f August 29 regulates the extracontractual responsibility of the Angolan State and Public Companies, for damages resulting from the exercise of the public activities (legislative, jurisdictional and administrative).

The Law covers the individual responsibility of the holders of administrative bodies, public officers and administrative agents.

The most important provisions of the Law are the following:

1. Anyone obliged to repair a damage, is obliged to reconstruct the situation that would exist if it hadn’t been verified the event which obliges the repair;
2. The indemnification is fixed in money unless the natural reconstitution is possible;
3. The indemnification must cover financial and non-financial damages, actual damages and loss of profit, as well as existing and future damages;
4. The holders of posts in state organs, public officers or agents are jointly responsible for any damages occurred, in case of illicit acts or omissions practiced intentionally or with gross negligence;
5. The State and public companies are jointly responsible with those referred to in d) above, in case such acts or omissions occurred during the exercise of their functions.
6. The right to demand indemnification expires in accordance with article 498º of the Angolan Civil Code (in general terms, three years after the plaintiff took knowledge of its right).

DECREE Nº 43/2022 OF AUGUST 19 ON EMPLOYMENT OF FOREIGN CITIZENS

The recently published Decree nº43/2022 approved and implemented several important changes to the mechanisms and proceedings related with the Employment of Foreign Citizens by local and foreign entities.

The goal of the Decree is to adapt the previous system (under the Decree 55/2008, now revoked) to the actual reality of the country.

In general terms, this diploma defines the employment regimens and, the correspondent formalities necessary for the approval and registration of such employment contracts.

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Portuguese law firms MC&A and PMCM join forces with the purpose of assisting Portuguese and International clients in the six jurisdictions where they have a presence.

The arrangement combines MC&A extensive practice in finance & capital markets, infrastructure, energy and oil & gas with PMCM traditional areas of civil, commercial and labour law, corporate, public and administrative law, litigation and arbitration (both civil and commercial) and nationality & immigration.

The firms will integrate several senior lawyers, each one with more than thirty five years of experience and will allow a considerable improvement of their practices in Portugal and in African Portuguese speaking countries.

Published in furtherafrica.com

This new Law came along with the purpose to highlight the right of free enterprise and cooperative initiative recognized in the Constitution for all private entities, with the State playing the role of economy regulator and coordinator of harmonious national economic development, without prejudice to its action in areas of public reserves, absolute and relative.

This new Law only has 11 articles in contrast with the 18 articles of the old Law.

In the old Law there was an article about the private sector that mentioned free private initiative, however, in the new Law, article 4 points up the free private initiative, mentioning that the general regime for access to Economic Activity in the Republic of Angola is that of free private economic and entrepreneurial initiative, without prejudice, to the provisions of the absolute and relative reserves of the State.

It also mentions that the State shall protect, and respect private property and free economic and entrepreneurial initiative exercised under the terms of the Constitution and this Law.

The access to Economic Activity is permitted, both national citizens and foreign citizens, under equal equality of circumstances, under the terms of the Law.

Another change that is relevant it is article 7 of the new Law that widens the spectrum of activities that constitute the relative reserve of the State, taking into account that one of these activities were considered in the old Law as absolute reserve of the State.

Therefore, the activities that were added are:

• Exploration of environmental conservation areas;
• Exploration of tourism development poles; and
• Management and valorization of solid waste from public deposits;

The activity that was considered as absolute reserve of the State and now is considered a relative reserve is the production, distribution, and commercialization of war material. In this way, the Law no. 25/21 came to update this regime.

Article by Duarte Marques da Cruz

Duarte Marques da Cruz is partner of the Portuguese law firm MC&A, specialised in international business advisory, with a special focus in Lusophone markets. With extensive experience in the Energy sector (Renewables and Oil & Gas) and in International Taxation, he has supported international companies in major upstream, midstream transactions and projects, including in implementing, exploration and development programs. Duarte has also supported international clients in other areas of practice, namely, Mining, Transport & Logistics, Regulatory Compliance and Mergers & Acquisitions in Mozambique, Angola and Portugal.
Through this Simplification Project, Angola shows to investors and economic players that intends to maintain its bet on the internal and external investment; on other hand, it is important to note that this simplification procedure is only at its beginning and is expected a wider range of facilitation in multiple public administration proceedings and regarding more sectors of the economy.

Published in furtherafrica.com

The Minister of Natural Resources, Max Tonela, announced on 27 October 2021 that the government of Mozambique may launch the 6th licensing round of sixteen (16) oil & gas offshore areas before the end of 2021.

Sixteen (16) licensing areas have been identified – five (5) in Rovuma Basin, seven (7) in Angoche, two (2) in Zambezi Delta and the last two (2) in the Save delta.

The plan is to launch the licensing round before the end of 2021 and finalize the selection and awarding processes by the first quarter of 2022.

Article by Duarte Marques da Cruz

Duarte Marques da Cruz is partner of the Portuguese law firm MC&A, specialised in international business advisory, with a special focus in Lusophone markets. With extensive experience in the Energy sector (Renewables and Oil & Gas) and in International Taxation, he has supported international companies in major upstream, midstream transactions and projects, including in implementing, exploration and development programs. Duarte has also supported international clients in other areas of practice, namely, Mining, Transport & Logistics, Regulatory Compliance and Mergers & Acquisitions in Mozambique, Angola and Portugal.
Through this Simplification Project, Angola shows to investors and economic players that intends to maintain its bet on the internal and external investment; on other hand, it is important to note that this simplification procedure is only at its beginning and is expected a wider range of facilitation in multiple public administration proceedings and regarding more sectors of the economy.