Greece expects to raise 3 billion euros in 2016 from selling state assets, nearly double the figure projected in next year’s budget but lower than targeted in its bailout, the head of its privatizations agency Stergios Pitsiorlas said on Tuesday.
As he told reporters, “It is possible we can reach 3 billion euros… as the starting point of 1.2 billion euros from the airports deal is already high.”
Critical period
State privatization fund TAIPED is now facing a critical two-week period that includes the agreement for the concession of the country’s regional airports and the new deadline for Piraeus Port bids.
Mr. Pitsiorlas underlined that the tenders for the port authorities of Piraeus and Thessaloniki will have to be completed in the first half of 2016.
He also calculated that the process for the transfer of a controlling stake in gas transmission network operator DESFA to Azeri state firm Socar is nearing completion, with the final agreement expected within the first quarter of 2016. He declared that Wednesday will see the start of the due diligence process for Fluxys, Enagas and Snam, the firms that have expressed an interest in a 16 percent stake in DESFA.
In the meanwhile, on Tuesday, the government postponed the deadline for the submission of binding offers for a 51 percent stake in Piraeus Port Authority in what will be the first sell-off project the SYRIZA-Independent Greeks is set to implement from start to finish, as all other project agreements had been signed before 2015. The new delay did not surprise to the bidders, as the consultation on the share purchase agreement and the shareholders’ agreement is still pending.
Extended deadlines
The deadline for submitting binding offers for railway companies Trainose and Rosco has also been extended. Originally it was meant to be in December, then in mid-January, and now TAIPED said this is has been moved to mid-February.
Pitsiorlas further predicted a swift renegotiation of the agreement signed by TAIPED and Lamda Development for the plot of the old Athens airport at Elliniko, saying that a new and tight timetable for the implementation of the development is required.
Contract for regional airports
Finally, the contract for the operating concession of 14 regional airports to German firm Fraport for 40+10 years will be signed in the next 10 days and will be “a very good contract,” head of TAIPED commented.
The airports included in the deal are those in Aktio, Chania, Kavala, Kefalonia, Kerkyra, Kos, Mytilene, Myconos, Rhodes, Samos, Santorini, Skiathos, Thessaloniki and Zakynthos.
According to the announcements, the joint venture will pay a sum of 1.2 billion euros on top of an annual 22.9 million euros in rent and 28.5% of income before taxes. The company has also committed to 330 million euros worth of investments in the next four years and 1.4 billion euros overall during the 40-year lease.
Privatization revenues
With a commitment to raise 6.4 billion euros from privatizations under a 2015-2017 rescue program, Athens practically doubles 2016 budget privatisation target to three billion.
Athens has committed to raising 6.4 billion euros from privatizations under its 2015-2017 rescue program. It has budgeted for privatization revenues of 1.9 billion euros in 2016 and had a 3.7 billion euro target under its EU/IMF bailout.
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