Algarve borough alleges “gross violation of contractual obligations”
Vila Real de Santo António is vowing to explore all legal avenues as it fights for the termination of a parking concession contract in the municipality.
The case dates back to March 2023, when the municipal council called for the termination of the agreement with ESSE – Estacionamento à Superfície e Subterrâneo, alleging “gross violation of contractual obligations by the concessionaire”. Among the violations cited is the “lack of information and response” from the company to requests for monitoring and oversight of the current contract in force.
However, the company filed an injunction requesting its suspension until a final decision on the main action. The Administrative and Fiscal Court (TAF) of Loulé has now decided in favour of the company, accepting ESSE’s request to suspend the effects of the contract termination presented by the municipality until a final decision is made on the termination request.
The municipality in undeterred, however, and pledges to exhaust all legal avenues, including appealing the court’s decision. As mayor Álvaro Araújo put it, “the immediate resolution of the parking concession contract is urgent and necessary to defend the interests of the municipality and its population.”
The council also highlights that no final decision has been made, and it awaits the outcome of the ongoing legal process.
“The municipality believes that ending the parking concession is the only just and viable solution to defend the interests of the municipality and all residents,” the mayor added.
While the municipality laments the court’s decision, public parking in the municipality will remain under the concessionaire’s management until the court’s final decision is announced.
