Greece finally issues tender for privatisation of Alexandroupolis, Igoumenitsa & Kavala ports

Alexandroupolis, Greece (PortSEurope) July 20, 2020 -The Hellenic Republic Asset Development Fund (HRADF), the agency responsible for privatising Greek state-owned assets, has issued three separate international public tenders for the development of the ports of Alexandroupolis, Igoumenitsa and Kavala. HDRAF published the following details: The port authorities of Alexandroupolis and Igoumenitsa will be developed by a means of a sale of a majority stake, while the Kavala Port Authority (OLK SA) is developed through a tender process for the sub-concession of a multi-purpose terminal within a part of Philip II port. Alexandroupolis Port Authority S.A.As regards Alexandroupolis Port Authority (OLA), the international tender process provides for the sale of a majority stake of at least 67% in the share capital of the company. OLA was granted the right to exclusively use and operate the buildings, land and facilities of the port land-side zone of the port of Alexandroupolis and the fishing shelter of Makri by virtue of a concession agreement with the Hellenic Republic. OLA also has administrative jurisdiction over the port of Kamariotissa in Samothraki and the Therma fishing shelter of Samothraki. The tender process will be held in two phases: (a) submission of expressions of interest and prequalification of interested parties and (b) submission of binding offers and selection of the preferred investor. Interested parties are invited to submit their expression of interest on Friday, October 2, 2020, until 17:00 (Athens time). Igoumenitsa Port Authority S.A.Similarly, the international tender process regarding the “Igoumenitsa Port Authority” (OLIG) provides for the sale of a majority stake of at least 67% in the share capital of the company. Igoumenitsa Port Authority was granted the right to exclusively use and operate the buildings, land and facilities of the port land-side zone of the port of Igoumenitsa, the fishing shelter of Sagiada, the fishing shelter of Plataria and the pleasure boat shelter of Sivota by virtue of a concession agreement with the Hellenic Republic. The tender process will be held in two phases: (a) submission of expressions of interest and prequalification of interested parties and (b) submission of binding offers and selection of the preferred bidder. Interested parties are invited to submit their expression of interest on Friday, October 2, 2020, until 17:00 (Athens time). For both tenders, HRADF has appointed “Deloitte Business Solutions - Euroconsultants” as financial advisor, “Your Legal Partners - Dracopoulos & Vassalakis - Alexiou Kosmopoulos” as legal advisor, “Doxiadis Associates, Consultants on Development and Ekistics S.A.”, as technical advisor and “Port Consultants Rotterdam B.V.” as commercial advisor. Kavala Port Authority S.A.HRADF has also issued an Invitation for Expression of Interest for the sub-concession of the right to use, maintain, operate and exploit a multi-purpose terminal within “Philip II” port (currently operated by Kavala Port Authority (OLK) The sub-concession area and activities of “Philip II” port includes: (i) the existing pier with a paved area of approximately 117,000 m², (ii) an additional plot of unpaved land and reclamation area of approximately 165,000 sq. m, (iii) the detached mole/breakwater, (iv) the commercial activity (general cargo, dry bulk and occasionally container vessels), and (v) certain equipment of the port. The sub-concession will be for a minimum duration of 40 years. The tender process of Philip II port will also be held in two phases: (a) submission of expressions of interest and pre-qualification of interested parties and (b) submission of binding offers and selection of the sub-concessionaire. Interested parties are invited to submit their expression of interest on Friday, October 2, 2020, until 14:00 (Athens time). HRADF has appointed “Ernst a nd Young Single Member Société Anonyme for the Provision of Advisory Services” as financial advisor, “KLC Law Firm” as legal advisor, “Doxiadis Associates, Consultants on Development and Ekistics S.A.”, as technical advisor and “Port Consultants Rotterdam B.V.”, as commercial advisor. Finally, HRADF announces that it received one binding offer for the sale of a real estate property at the former workplaces of the project “Rio - Antirrio connection” by a private investor. PortSEurope Note: Alexandroupolis port is key asset and the local government has slowed the privatisation process in order to generate more interest from overseas, specifically the U.S. In an interview with the local Ta Nea in May, U.S. Ambassador to Greece Geoffrey Pyatt, said, “We continue to encourage American investment in key sectors like energy and infrastructure, including the Alexandroupoli port and FSRU, new wind power concessions, and the Elefsina shipyard: these are long-term projects whose strategic value hasn’t changed”. The port of Alexandroupolis could become an import hub for U.S liquified natural gas (LNG), which would challenge Russia’s role of almost dominant energy supplier in the region. Last week, both local and U.S. diplomatic sources have reported that U.S. investment fund Black Summit Financial Group has indicated an interest in participating in the forthcoming privatisation of Greek regional ports Alexandroupolis and Kavala. The implementation of the Gas Interconnector Greece – Bulgaria (IGB) and Trans Adriatic Pipeline (TAP) pipelines, near to Alexandroupolis, are changing the energy map of southeastern Europe. Together with the Floating Regassification Unit in Alexandroupolis, these developments will play a major role in reinforcing the energy security and independence of the countries of southeastern Europe. Kavala port provides cargo and freight services but is more focussed on passenger and yachting services. The U.S. International Development Finance Corporation (DFC), the government development bank, is also reported to be keen on infrastructure investment in Greece. For a detailed article on U.S. interests in Alexandroupolis port, please read Analysis – Is Alexandroupolis port the new trump card in the Trump administration’s Mediterranean Great Game? March 10, 2020 The government’s portfolio includes 10 regional ports in the form of sociétés anonymes; the ports of Volos, Rafina, Igoumenitsa, Patras, Alexandroupolis, Heraklion, Elefsina, Lavrion, Corfu and Kavala. In the last two years, the Piraeus and Thessaloniki port authorities were sold via the sale of majority stakes. Copyright (C) PortSEurope. All Rights Reserved. 2020.

Greece finally issues tender for privatisation of Alexandroupolis, Igoumenitsa & Kavala ports

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Greece finally issues tender for privatisation of Alexandroupolis, Igoumenitsa & Kavala ports

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