Elliniko deal will finally get to Parliament this month


TAGS: Privatizations

The concession contract for the old Athens airport plot at Elliniko on Athens’s southern coast is on its way to ratification by Parliament, under pressure from the country’s creditors for the release of the remaining 2.8 billion euros from the first bailout review.

The bill ratifying the concession is currently at the government’s general secretariat for final processing and is expected to be submitted to MPs by the middle of next week, with a possible date for the vote being September 26. That’s before the end of the month, which is the deadline for the implementation of a set of prior actions on which the disbursement of the 2.8 billion depends.

The bill will therefore come to Parliament 22 months after the first agreement between the consortium led by Lamda Development and the state was signed.

The bill’s report notes that the consortium won the tender with a bid of 915 million euros and the obligation for the payment of 32.79 percent of that on the day of the transfer. The investor, the report, adds, undertakes to implement an investment plan of 4.59 billion euros. This brings the total investment to over 5.5 billion euros. The deadline for the completion of the obligatory investment plan is 15 years, says the bill’s report.

A recent study by the Foundation for Economic and Industrial Research (IOBE) foresees the development generating some 90,000 jobs.