HR Privatization Programme (October 2012)
+ Add to binderSummary of key HR Privatization Developments (October 2012)
A. Administrative Agencies
Τhe HR Privatization Programme under the Memorandum II Legislation (Law 3986/2011) is run by two agencies:
(i) the Hellenic Republic Asset Development Fund (“HRADF”, www.hradf.com), a private corporation formed by law and structured as a private portfolio manager, which (also by law) has acquired title to most HR assets earmarked for privatization, and is responsible for organizing international public tenders for advisory services to the HRADF and for the actual tendering of the privatization assets (see Table 1); and
(ii) the Inter-ministerial Committee for Reorganizations and Privatizations (“IMCRP”,), headed by the Minister of Finance. The IMCRP retains high level political command of the privatization programme, and represents the HR in the privatization of those assets, title to which has not passed to the HRADF. The operational arm of IMCRP, involved in the advisor selection and tendering processes is as of last month a subdivision of the General Directorate of Economic Policy of the Ministry of Finance.
B. Tendering process (advisors)
Advisory services to the HR are governed by EU public procurement law (mainly Directive 2004/18/EC). All tender invitations to date have been conducted as competitive dialogue processes.
C. Tendering process (assets)
Some, though by no means all, asset transactions comtemplated in the privatization programme, are governed by public contracts law. The law expressly allows any conceivable privatization methodology (asset transactions, corporate transactions, licenses and concessions etc). All tender invitations made so far have been structured as open international tenders.
D. Helliniko SA in particular
As regards in particular the Former Athens Airport Plot (the “Hellinikon S.A.”), according to the minutes of the meeting of the Board of Directors of HRADF held in September 11, 2012, four investors have been pre-selected to participate in the second phase of the tender process for the sale up to 70% of Hellinikon SA”: (a) Elbit Cochin Island Ltd, (b) Lamda Development S.A., (c) London and Properties and (d) Qatari Diar Real Estate Investment Co. QSC. See http://www.hradf.com/en/real-estate/hellinikon.
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Privatization