Ministério das Finanças (Ministry for Finance)
Decree-Law
By Law no. 29/2002 of 6 December, the basic telecommunications network was deassigned from public domain and integrated in the private State domain, its dismissal in favour of the historic operator being authorized. Under this law, and pursuant to the Resolution of the Council of Ministers which approves the respective minute of the purchase contract, the basic network was alienated to that operator, which represents a natural development of the market of national telecommunications.
Nevertheless, taking into account that, in a scenario not expected in the present time, exceptional circumstances may arise where the public interest demands the repurchase of the basic network by the State, and having regard to the fact that the current legal framework does not provide for such a repurchase, the Government decided to establish, under the competent authorization of the Assembly of the Republic, a compulsory purchase mechanism enabling to take upon itself the ownership and possession of the basic network, should it prove necessary.
Therefore:
Under the legislative authorization granted by Law no. 6/2003 of 6 March, and pursuant to point b) of paragraph 1 of article 198 of the Constitution, the Government hereby decrees the following:
Article 1
Compulsory purchase
1. The compulsory purchase of the basic telecommunications network, or of any of the assets which integrate it, is hereby permitted, for reasons of public interest, duly justified.
2. Upon termination of the concession contract of the telecommunications public service before expiry of the period provided for, and the buy-back of the referred concession, the State may determine the compulsory purchase of the basic telecommunications network.
3. It is incumbent upon the Council of Ministers, under proposal of the member of the Government responsible for the communications sector, to adopt the purchase decision.
Article 2
Transfer of possession
1. In the case of the compulsory purchase provided for in paragraph 2 of the preceding article, the transfer of possession shall operate upon termination of the concession contract, even if the compensation has not been fixed.
2. Where the compulsory purchase is not associated to the concession termination, the Council of Ministers may determine at any time the transfer of possession thereof to the State.
Article 3
Compulsory purchase process
1. In the event of a compulsory purchase, the value of the compensation shall correspond to the value of the asset to be purchased at the date of the purchase decision.
2. The compensation value shall be fixed by a court of arbitration, which shall comprise:
a. An arbitrator designated by the State;
b. An arbitrator designated by the owner of the basic telecommunications network;
c. A president arbitrator chosen by agreement between the arbitrators designated pursuant to the precedent points, or, in the absence of an agreement, by the president of the Lisbon Court of Appeal.
3. The arbitrators shall be designated among technical experts with acknowledged competence in the matter.
4. The parties shall designate the arbitrator within 20 days from the purchase decision.
5. It is incumbent upon the court of arbitration to determine the terms of the inventory and assessment of assets to be purchased.
6. The decisions of the court of arbitration shall be no longer subject to appeal.
Article 4
Entry into force
The present statutory instrument shall enter into force on the day following that of its publication.
Checked and approved in the Council of Ministers of 27 March 2003. – José Manuel Durão Barroso – Maria Manuela Dias Ferreira Leite - Carlos Manuel Tavares da Silva.
Promulgated on 16 April 2003.
Let it be published.
The President of the Republic, JORGE SAMPAIO.
Counter-signed on 21 April 2003.
The Prime Minister, José Manuel Durão Barroso.
