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Government Contracts Worth over Two Billion Euros Come into Effect until the End of the Year

10 June 2010 / 16:06:38  GRReporter
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Тhe Ministry of Economy, Development and Merchant Marine runs twenty-two public tenders for the implementation of new state contracts totaling 2.09 billion Euros. “The selected 22 state orders, for which will be called separate tenders are technically and administratively feasible and will directly benefit the country’s economic growth,” the minister of economy Katseli Luke told reporters. The projects selected to be state contracted are part of the government’s program of partnership between public and private sectors for economic development.  

The projects expected to be launched will be divided into two main categories. The first group of projects are for public use and their construction will be assigned to companies from the private sector. This includes building of schools, hospitals, buildings for state enterprises. The second type are those projects assigned to private companies for construction, operation and maintenance for a certain period of time on the base of concession – ports, highways, airports and different types of infrastructural projects. After the expiration of the concession these projects will return as state property.

The Minister of Economy, Development and Merchant Marine Luke Katseli sharply criticized the previous government, which, according to the program, had to absorb about 5.7 billion Euros out of a total 52 contracts. For the past five years during the former government of New Democracy only one contract was implemented. It was for the construction of seven bases of the fire defense service, worth 25 million Euros. As main reasons for the ineffectiveness of the partnership programs between public and private sectors the Minister pointed out the lack of coherence between different ministries, especially between the one of economy and road transport and infrastructure, and oversight of technical and administrative details in the approved state tender projects. “In many cases, the projects in Greece could not be implemented in practice due to inaccuracy of the land ownership or absence of significant terms and permits for the development of the project,” explained Minister Katseli.

Companies that will benefit state and municipal tenders within the framework of the partnership program between private and public sectors will receive approval and partial funding for the implementation of the project from the European Investment Bank (EIB). The Ministry of Economy said it would allocate funds to the EIB’s JESSICA program, which funds projects for improvement of urban areas in the European Union.  

After the inauguration of the socialist government of PASOK the announced public tenders in Greece are the first real steps towards strengthening the country’s economic development. The government of the Prime Minister George Papandreou was hardly attacked by the Greek and international community that the introduction of the emergency economic measures will intensify the crisis in the country and will lead to long recession. The main accusations of the opposition leaders were that by trimming the government spending and raising the taxes and excise duties, without appropriate policies to increase production in the country, Greece will come to beggary. The international credit rating agency Moody’s promised  slow death of the Greek economy even in mid-December last year, if the government fails to take immediate measures to restore the economic growth and attract new investments.

Tags: EconomyMarketsCompanies
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