Monday December 22, 2014 Search
Weather | Athens
13o C
8o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Industry satisfied with ‘Small PPC’ portfolio

By Chryssa Liaggou

The plan for the creation of a smaller rival to the Public Private Corporation through the sale of production capacity to private investors, expected to be submitted in Parliament soon in the form of a draft law, has received some positive feedback from the market after parts of it were leaked to the media.

Market officials say the fuel mix offered in the portfolio of the so-called “Small PPC” is satisfactory although the plants to be conceded require high investment for their sustainability and competitiveness to be retained – a parameter the state will need to take into account regarding the anticipated revenues.

The industry speaks of a “fair price” whose level will depend on the so-called “gray areas,” – e.g. the trading sector and PPC’s borrowing – and is awaiting the final text of the draft law, which according to sources from the Environment and Energy Ministry will be put up for public consultation on Monday.

There are some reservations however over whether Parliament will clear the bill, given the sensitivity of the issue and the upcoming local and European elections, as well as over the degree of interest it will be able to generate in the private sector.

Investment interest is expected to come from existing players in the electricity production market. These are the groups of Hellenic Petroleum, Mytilineos, Motor Oil, GEK Terna and Elliniki Technodomiki, which are likely to look abroad for bidding partners. Among the international companies likely to participate in offers for the Small PPC, the favorites are those that are already involved in local electricity production, such as Italy’s Edison, which is a partner of Hellenic Petroleum, Gaz de France Suez, which is a GEK Terna partner, as well as Qatar Petroleum International, which is now a partner of GEK Terna at the Heron II plant.

The market remains confused as to how a share of the existing PPC consumers will be passed on to the new power company to be privatized, as this is a key point in the process of creating competition for the country’s electricity giant. This issue, observers say, will be key in terms of attracting investors and determining the price to be paid.

On the production plants to be privatized, market insiders say that two, both at Amyntaio in northwestern Greece, will have to be withdrawn in 2020 unless the necessary investment for their modernization is forthcoming, while other plants face a variety of problems. Furthermore, out of the three mines to be included in the Small PPC’s portfolio, for the time being two of them will only have their rights conceded without offering any electrical output, given that the Komnini mine has not yet opened because a whole village needs to be transferred elsewhere first, and the Kleidi mine has remained closed for the last five years due to a landslide.

The hydroelectric portfolio is seen as particularly attractive. The Nestos complex in eastern Macedonia, including the plants at Platanovrysi and Thisavros, with an option for a third at Temenos, constitutes a great asset, while the two plants at Pournari are also seen as reliable.

Another strong point of the portfolio on offer will be the natural gas-powered plant at Komotini, although investors would have preferred the new production plant at Aliveri, which is closer to the main consumption center of Attica and has a greater output.

ekathimerini.com , Friday March 7, 2014 (22:37)  
Spanish bond gains push yield to record low as Greek debt rises
Low costs, yield hunt to propel long-term euro zone bond sales in 2015
Greek current account deficit shrinks in October
Energy shares and Greek rebound lift European equities
SYRIZA offices in Athens evacuated after bomb threat
SYRIZA’s headquarters in central Athens have been evacuated after someone called to warn that a bomb had been planted there. Police are searching the building on Koumoundourou Square. On Fri...
ANALYSIS
Greek parliament vote in balance after Samaras election offer
Greek Prime Minister Antonis Samaras' surprise offer to lawmakers to go to the polls late next year in exchange for a vote for his presidential nominee has injected fresh momentum into his f...
Inside News
SOCCER
Special day for Abidal, lucky one for PAOK
PAOK scraped through its Livadia challenge beating Levadiakos to remain on top of the Super League for Christmas, one point ahead of Olympiakos that enjoyed a great game at Kalloni and offer...
BASKETBALL
Explosive Barca unfazed by Panathinaikos, bomb scare
Panathinaikos lost 80-67 at home to Barcelona on Friday in a rather meaningless game at the end of the first group stage of the Euroleague, but the encounter will be remembered for the bomb ...
Inside Sports
INTERVIEW
Klaus Regling stresses debt sustainability through commitment to reforms
BRUSSELS – The man who is responsible for the loans to Greece as managing director of the European Stability Mechanism (ESM/EFSF), Klaus Regling, is the only high-ranking European official w...
INTERVIEW
‘Crisis of confidence will come back again and again,’ says Thomas Piketty
He’s treated like a rock star wherever he goes to lecture. His book “Capital in the 21st Century,” a study on income and wealth inequality from the 18th century to the present, recently tran...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. SYRIZA offices in Athens evacuated after bomb threat
2. Spanish bond gains push yield to record low as Greek debt rises
3. Low costs, yield hunt to propel long-term euro zone bond sales in 2015
4. Greek parliament vote in balance after Samaras election offer
5. Parliament to investigate Haikalis claim he invested in stock market
6. Tuesday morning stoppage on metro, electric railway and tram in Athens
more news
Today
This Week
1. Euro shaky on ECB and Greece, dollar keeps edge
2. Government accuses SYRIZA and Independent Greeks of 'clear alliance'
3. Prosecutor gathers depositions in Independent Greeks 'bribe' probe
4. Draghi starts squaring QE circle in month of persuasion for ECB
5. Parliament's ethics committee to look into independent MPs' comments
6. Energy shares and Greek rebound lift European equities
Today
This Week
1. Samaras summons bond vigilantes with euro exit talk
2. High stakes
3. Europe's drama in Greece needs final act to avoid tragedy
4. A friendly yet firm message from Pierre Moscovici
5. On the edge but not gutless
6. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.