ECONOMY

Cosco’s Piraeus masterplan stopped for want of environmental report

Cosco’s Piraeus masterplan stopped for want of environmental report

Greece’s highest administrative court has pulled the brakes on an investment plan for the country’s biggest port that was part of the 2016 concession agreement between Piraeus Port Authority (OLP) and China’s Cosco Shipping.

In a ruling on Monday, judges at the Council of State found that previous approvals of the so-called masterplan for Piraeus had overlooked the absence of a environmental impact report for the different facets of the investment, as required by European Commission and national regulations.

Among other interventions and additions, the investment plan foresees the expansion of the existing passenger port and the creation of a new one, a bigger import terminal for vehicles, more storage space, hotels, a parking facility and more.

Under the 2016 privatization deal, Cosco bought a 51% stake in OLP for 280 million euros and committed to mandatory investments worth about €294 million over five years to buy an additional 16% stake.