MARIO PAIXÃO LOPES Chairman of ASA

Thanks to the achievements of the past 30 years, Cape Verde has now reached a turning point politically and economically. As President of ASA, one of the major companies of the country, how to you evaluate the situation in the country?

I think that we are going through a very important stage. First of all, Cape Verde is now taking full advantage of its geographical situation, and in the context of globalization, this is essential. The country has also become more competitive and we can say today that there is real competitiveness in the service sector. Also, the democratic process is now mature: Cape Verde enjoys true economic, political and social stability.

In a regional context, Cape Verde is very unique. Today, various factors are projecting Cape Verde onto the international scene and the world is looking at this little country because it can play an important part in the international community, even though it lacks natural resources. The country has proven its economic and political dynamism and can be a bridge between Africa, Europe and America.

In what sense can Cape Verde be useful to the international community?

We are trying to reinforce our role in the political, commercial and cultural exchanges between nations. We are situated in the Atlantic, midway between Europe, Africa and the U.S. We are African but with a strong western influence and we can thus play an important part in the relationships between the Western world and Africa. We are a platform between these two parts of the world.

Prime Minister Neves explained to us that he wants to promote "good governance" as a strategic resource for the country. What is your opinion on that?

This is a fundamental element in the economic development of the archipelago. Without political stability and good governance, you cannot evolve economically. The Prime Minister is absolutely right to put this element at the center of his development strategy. The democratic process guarantees the cultural harmony of the country and is an important factor for social cohesion. It is essential to guarantee the stability, efficiency and transparency of the institutions that are part of the State and the Republic. The public administration needs to be reinforced in order to improve public services and their capacity to answer the citizens' needs as well as those of the economic actors. It is essential to guarantee a healthy economic environment. So I of course completely agree with this policy that gives priority to good governance and political stability. This is a principle which we actually apply here in ASA where we have a serene, transparent and stable administration.

ASA is now going through an important stage of its development. It received Category 1 status from the Federal Aviation Authority 18 months ago. ASA has the most up-to-date system for air traffic control in Africa and also is on the verge of opening new airports in Praia (international airport) as well as on the islands of Boa Vista and St. Vincent. How will all these developments affect ASA?

Transport is fundamental for Cape Verde. We are an archipelago in the middle of the Atlantic, halfway between Europe, America and Africa. Our diaspora is very numerous and dispersed all around the world. All these factors make air transportation a fundamental element for the economic and social progress of the country. Being in charge of supervising the airports and the air space, ASA has a key role to play in order to capitalize on the geographical situation of the country. We want to reinforce the safety of air transport activities and contribute to their economic results.

The air traffic between Europe and South America is very important: last year, we controlled 29,800 airplanes. It is fundamental to guarantee the safety of the flights and all air operations between these two continents. ASA is modernizing its services and its infrastructure, and aims to become more competitive than its competitors from Senegal, Canary Islands etc.

In order to achieve this, we have drawn a commercial plan for the period 2004-2008 which includes a series of objectives. In this context, we have already put in place a modern Air Traffic System (ATS). We are the first African country using this system and we have installed new communication and navigation systems. We have also installed a radar system for local surveillance in Sal, Praia and St. Antão. We are thereby covering the whole archipelago.

As far as airports are concerned, the new international airport of Praia is due to open in October. We are also about to start the extension of the Boa Vista and St. Vincent airports in order to adapt them to international traffic. By the end of 2006 Cape Verde will have 4 international airports, which will play an important part in the development of tourism, industry and trade.

Our objective is to be useful for Cape Verde. We are a pillar for the development of the country. We have carried out economic studies that show the impact the new airports will have on the economy. For instance, St. Vincent airport will contribute to the development of the north-west area of the archipelago, where the islands of St. Vincent and St. Antoa are situated. These two islands have a lot of potential for tourism and sports, and the creation of the airport will of course favor these industries. The island of Boa Vista, which up to now remains almost untouched, also has tremendous potential for tourism and the airport will have a major impact on that.

Since ASA's activities are so important for the development of the islands, we work in close cooperation with the government in order to implement strategies that can amalgamate the technical, social and economic dimensions of each project.

As far as your relation with the government is concerned, what is exactly the status of ASA?

It's a public company that has the status of a limited company. We form our business/commercial plan and have a contract with the government which includes objectives and performance. So it is not a private company, but it is very much inspired by the private system. This model was approved in 2001. I am the first ASA president who has experienced it and I believe it is a very efficient model. It gives you more responsibilities and more autonomy. My obligation is to improve the financial, technical and operational performances of the company. This is a very positive experience for Cape Verde, the company and our staff.

From a personal point of view, it is a very interesting experience as well. Our challenge is to be very good planners. We must have excellent knowledge of international markets in order to include their evolution in our planning.

This model will probably stay in place for the coming years and I don't think there will be any plans for privatization soon. This organization is efficient and there is no reason to change it. However, it is clear that we can establish commercial relations with private groups. For instance, for the Boa Vista airport, we are negotiating with a private Italian group which includes various hotels and tour-operators as well as an airline company. We want to put a public-private partnership in place to manage the Boa Vista airport. This is an ideal solution for ASA: to be able to sub-contract with various partners. In this respect, preliminary studies for Boa Vista are very promising. We are also looking for partners for the maintenance of the aircraft in our airports, for VIP assistance and also for cargo operations. We are 100% open to any kind of collaboration with private companies.

What will be the positioning of the new international Praia airport compared with Sal airport?

The airport is here to serve the airline companies. The airlines that are interested will say which airport is best qualified for their needs. We think that at first, Praia will be the base for TACV. It will predominantly be a base for the development of tourism on the island of Santiago. But all options are open and we are ready to talk with all interested parties. The airport will bring a new economic dynamic to the archipelago. We already have a commercial plan and an air traffic forecast, and things look good.

Tourism is one of the pillars of economic growth in Cape Verde, and ASA plays a key role in its growth. What is your evaluation of the development of this sector?

There is actually a debate here about this. Some people argue that tourism development on the island of Sal, for instance, has not been done in the best conditions for the country. Big hotels have been built, owned by foreign groups, and which operate with the "all inclusive" system. Some people think that this system does not allow for a balanced development of the island and destroys the landscapes. I am from Santa Maria, in the south of Sal. I have seen tourism grow and change a lot of things. So I think the contrary: the result is positive. I remember in what situation Sal was in 1984: there were no jobs and the town was like a ghost town. With tourism, everything changed and people have been able to find jobs and a better quality of life.

It is fundamental to respect the environment and be cautious about tourism development, but we also need to attract a crucial mass of tourists so that this sector really gets a kick-start. In order to do this, we have to respect the rules and objectives of the investors in the hotel sector.

Tourism is really the industry of the future for Cape Verde. Actually, I hope that one day the trend will benefit the Capeverdians themselves and that they can also discover, as tourists, the rest of the world.

After so many positive achievements, what are your challenges for the future?

In a nutshell: modernization. The service ASA provides must offer a perfect exchange platform between Cape Verde and the rest of the world. This is what will make everything possible.
We are a tiny country but we have the means and the aim of being big and useful for the world. We have already gained the trust of our partners and we hope to keep it. We have to work to fully realize our potential.