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Call for Investors in the Public Companies

04 June 2010 / 11:06:03  GRReporter
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The government aims to gain €5.5 thousand millions from the privatization of public companies. First, the ministers have estimated that they can secure €2.5 thousand millions for the state treasury till the end of 2010 but then this ambitious plan failed because of the economical situation that does not allow the relevant agreements to be signed under beneficial conditions. At the same time the government is trying to avoid the reputation of selling the state property because of the crisis. In any case, the state will keep 51% control share of the companies it is going to sell.

The implementation of the plan begins with the state railway company which every year suffers loss of €1 thousand million. Probably, 49% of the company engaged in the railway functioning will be launched on the market and its managers will be replaced. “The cure” of the railway company is part of the agreement between the government and the creditors and the plan that will be presented this month includes closing of those train lines which bring only financial losses. Thousands of railway employees are seriously concerned about their employment as according to the privatization programme there will be a lot of changes.

A large part of main roads will be offered to private companies –for example, Egnatia highway and at the same time the adjacent lands will be sold for commercial purposes. For now there won’t be any changes in the ownership of the electric company, the state natural gas company and the state oil company. The reform of the state electric company will take effect soon and the production of electricity will be separated from the transferring and distributing operations. This means that another company will be in charge for the electricity distribution. The producers and importers of electricity will not have any managerial functions in this company. The government plans to sell some of the units producing electricity which will open the energy market and offer suitable environment for private investors.

Changes in the port management is anticipated as well as further privatization of the Pireya port by selling more shares on the stock exchange. Full privatization of the metal working company is possible. The plan for the company supplying Athens and the second largest city – Thessaloniki – with water includes decrease of the state share to 51%. Now the state holds 61% of the company supplying Athens and 75% of that supplying Thessaloniki.

It is anticipated the government to assign advisors for the privatization of the large companies. The expected annual revenues amount to € 1 thousand million.

Tags: NewsEconomy InvestmentsState companiesElectricity Water Railways
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