1 - The National Government signed a contract with Viatel company on May 18, 2011 for the installation of submarine optical fibre cable on Flores and Corvo in order to complete the installation of next generation networks in 12 Azorean municipalities.

2 - Under terms of the contract, Viatel, PT's shareholder, was in charge of the construction and operation of these infrastructures and it hold the right of ownership over them. This company proposed a global investment of 20 million Euros, of which 12.4 million would correspond to the installation of optical fibre cable on Flores and Corvo.

3 - In turn, the National Government was responsible for ensuring the financing of 12.9 million Euros, taking into account that these investments fall within its powers.

4 - Although the contract was signed a year ago, the National Government has never secured any funding to implement this project, as stipulated by the contract.

5 - Given the lack of interest of the National Government to comply with aforementioned contract, which hampering the beginning of optical fibre cable connection to Flores and Corvo, the Azorean Government has decided provide 85% of the funding required for the implementation of this investment, representing a global investment over 10.5 million Euros. The Regional Government's decision was officially announced to the National Government and the concessionaire on February 10. In fact, there is no pending application for EU funds.

6 - Even though, the Viatel informed the Region that the National Government's refuse to assume a financial burden with the installation of optical fibre cable on Flores and Corvo as well as with the project for the installation of next generation networks in 12 Azorean municipalities.

7 - The company announced that the works would only start if the Azorean Government assured the global amount of the funding that had been previously ensured by National Government.

8 - In conclusion, the National Government signed a contract with the company assuming full responsibility for the necessary investment, but is now evading its responsibilities.

9 - In addition to paying 85% of the investment, if the Azorean Government had to make the full investment, it would have pay 12.9 million Euros, an amount that exceeds the installation costs of optical fibre cable.

10 - From the very beginning, the whole process was conducted by the National Government: launch of public tender, awarding of contract works, signing of contract and submission of a licensing requirement to the Court of Auditors. At the time, PSD-Açores stated the following: "once again a PSD government leads such an important project."

11- After all, the National Government does not intend to invest a cent and although the Region subsidises 85% of the total investment; there is no desire to go ahead with this investment and they even want that the Region more than the installation costs of optical fibre cables.

12 - In this case, PSD-Açores has shown its usual behaviour: let the Regional Government pay. In fact, let the Azorean Government pay RTP-Açores, public service obligations to reduce air fares, ANA airports, the training of PSP officers, the University of the Azores. And PSD seems to totally agree with this position.

13 - Following the meeting held between the Regional Government and the Flores Island Council, the Government will safeguard the interests of Flores and Corvo islanders in this process, as announced.