The final agreement on the privatisation of Astir Palace Resort in Vouliagmeni Athens suburb is to be expected within the next few days, according to Hellenic Republic Asset Development Fund (HRADF -TAIPED) president Stergios Pitsiorlas.
As Mr. Pitsiorlas said “The State Council rejected, rightly in my view, the initial proposal because it imposed an intervention too great that completely change the character of the area. We negotiated with investors and accepted with the same price a solution very close to what the State Council specifies and the new plan will not face problems.”
The Hellinikon project
Concerning the Hellinikon former Athens airport area project, he stressed that this represents a huge €6 billion investment in the coming years, and expressed the view that within the first months of 2016, the final negotiation with investors for improvements on the plan to get the project through the authorization and implementation phases will be completed.
Earlier, Mr. Pitsiorlas, presented the full privatization programme for 2016 and expressed his optimism that following completion of a bank recapitalization plan and the first review of the Greek economic adjustment programme, the implementation of HRDAF’s programme will be a factor which would very positively affect the country’s course.
Nine privatizations
He expected almost the completion of nine privatizations in the first half of 2016, privatizations which have attracted international and domestic investment interest. He presented the timetables and progress made on a number of privatizations and state asset exploitation, such as the 14 regional airports, Piraeus Port, DESFA, Thessaloniki Port, TrainOSE, Astir Hotel Vouliagmeni, Hellinikon, Athens International Airport and two tourist projects, Afantou (Rhodes) and Kassiopi (Corfu).
Pitsiorlas said that a deadline for submitting binding offers for Piraeus Port was December 21. “There are three candidates for Piraeus: chiinese Cosco, danish ARM Terminals and ICTS from the Philippines.”
First quarter of 2016
Referring to the privatization of DESFA, the natural gas network operator, he said that “SOCAR, the winner of the tender, must transfer at least 16 pct of DESFA to another company, preferably European, with experience in natural gas network operation. Belgian Fluxys and Spanish Enagaz along with Italian Snap are interested in buying 16 pct of DESFA…I expect that this process will be completed in the first quarter of 2016”.
Binding offers for Thessaloniki Port are expected to be submitted in early April 2016. “There are eight candidates, very strong players in the transport sector,” he concluded.
Progress report
Pitsiorlas said that the privatization process for TrainOSE will be delayed and that a binding offer procedure should have been completed by mid-February next year. For Astir Hotel Vouliagmeni, he said that the price agreed was high, adding that both sides have been working on a new agreement to meet requirements set by the State Council. A process for implementing the Hellinikon project has began while talks to improve contract details with investors were expected to be completed in the first quarter of 2016.
HRDAF will begin procedures for extending a contract for the Athens International Airport for another 20 years, while the Fund has also the option to sell a 30 pct equity stake in the airport at a later stage.
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