Trainose sale gets on track

The sell-off of railway service operator Trainose is back on track after state privatization fund TAIPED on Friday announced the start of the first phase of the tender, inviting interest in 100 percent of the company by September 16.

This will be followed by the second phase, during which the short-listed suitors will be asked to submit their binding offers, TAIPED said.

Before the tender is completed, Trainose will also have signed a series of contracts with the state and with parent company Hellenic Railways Organization (OSE) that will allow the smooth operation of the company in the coming years.

The five contracts Trainose will have to sign will be: a five-year public service supply obligation contract for unpopular, subsidized routes for a annual fee that will not exceed 50 million euros; a track access contract with OSE in its capacity as operator of the National Railway Infrastructure; a long-term contract on carriage leasing with OSE; a long-term contract with the Hellenic Carriage Maintenance Company (EESSTY) for maintenance services, and long-term agreements for the lease of selected properties.

Bidders must have an average of at least 100 million euros in group assets in the last three financial years if they are companies, while funds will need to show at least 200 million euros in active and non-committed capital over the last financial year.

The conditions add that if a bidder is a consortium of companies, the head of the consortium will need to own at least 34 percent of it.

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