Greece Assets Fund Pushing Privatization Projects

Photo source: AIA

Greece’s assets fund is moving ahead with projects that have been put on hold since the elections in January, with top priorities the privatization of Athens International Airport (AIA) and 14 regional airports.

The Hellenic Republic Asset Development Fund (known as TAIPED) is currently examining the privatization of a 30 percent share of AIA, which has been transferred to the Fund, together with the extension of the concession contract by 20 years, until 2046 (initially set at 2026).

The Greek government owns a 25 percent stake in AIA. According to TAIPED, shares are expected to go on sale in December, with the launch of a tender in February.

In the meantime, the privatization procedure for 14 regional airports is underway, with a concession contract awarded for 40+10 years to Fraport – Slentel, the highest bidder. The Greek-German consortium made an offer that includes a one-off fee of 1.2 billion euros, a 28.5 percent share of pre-tax revenue and annual remuneration of 23 million euros.

Finalization of the deal is expected this month, most likely after the snap elections on September 20, with the EU Commission approval set for November, followed by parliament endorsement and the launch in 2016.

Other projects moving forward include the privatization of major transport infrastructure, utilities, railway operators, the Greek postal services, and the Hellenic Telecommunications Organization.

According to Greek daily Kathimerini, Greece has agreed with its creditors to set up a new 50-billion-euro fund in the coming months, which will include real estate, public participation and concession rights. The government will be expected by October to recommend an independent task force that will work with the EU and will oversee the structure and governance of the new fund.