Strict plan proposed for privatizations

Strict plan proposed for privatizations

The eurozone and the International Monetary Fund are demanding the utilization of all assets in state sell-off fund TAIPED’s portfolio, and the immediate issue of government decisions for the implementation of the already completed tender procedures – not only for the 23 projects included in the latest Asset Development Plan (ADP), but 27 projects.

The latest draft agreement that the creditors presented to the government, which Kathimerini has seen, provides for revenues of 6.4 billion euros from those utilization projects by the end of 2017. This indirectly puts an end to the expectations of several cabinet members for TAIPED to stop the privatizations once it has completed nine specific projects. This is in addition to the creation of a new hyperfund worth 50 billion euros, in which the latest bailout agreement provides for the inclusion of more state-owned enterprises.

Among other points, the draft agreement states that “the ADP will be updated every six months by TAIPED, and the government will adopt the plan.” TAIPED sources told Kathimerini that the ADR updating will take place after the bailout review is completed, in cooperation with the government.

As for the four state assets to be added to the 23 projects, Kathimerini understands that they likely include the regional ports, the marinas and the real estate properties that TAIPED already controls but were not included in the ADP of the bailout agreement reached last summer.

The draft agreement dictates that the government will make sure potential investors stay interested and that it “is committed to facilitating the privatizations process and to implementing all the necessary actions that will allow for the successful completion of the tenders.”

The creditors are also asking for detailed timetables to be submitted soon in relation to the completion of the transactions for the 14 regional airports, Piraeus Port Authority and the development of the plot of the old Athens airport at Elliniko. They are demanding that any delays in the timetable be urgently dealt with by the government.

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