Greece restarts Piraeus port privatization process: official

Greece relaunched this week the Piraeus Port Authority (PPA) privatization process which had stalled for months, Greek government spokesman Gavriil Sakellaridis said on Thursday.

The Greek official stressed that final decisions on the privatization plan were linked to ongoing negotiations with international lenders on a new deal regarding the resolution of the Greek debt crisis.

"The Hellenic Republic Asset Development Fund (HRADF) rephrased the terms of the tender concerning PPA's privatization, taken into account the interests of the Greek state, employees and the city of Piraeus and trying to avoid a cancellation of the process which could raise demands by participants," Sakellaridis told a press briefing in Athens on Thursday.

The Greek official confirmed earlier media reports that the HRADF has altered the terms of the tender and that the issue was discussed during a cabinet meeting on Wednesday evening, but noted that no final decisions on the sale of PPA were made.

"The entire process is linked with the progress in negotiations with lenders and the final deal (on the Greek debt crisis). The privatization is part of the comprehensive agreement ... We will see the matter when the time is mature," the Greek official stressed.

Sakellaridis acknowledged that the Leftist government which took office after January's general elections has shifted from its pre-election stance on the issue.

"We are not trying to hide the fact that this is a concession. The significant element in this framework is to place terms that do not lead to a sellout. We do not follow this rationale," the Greek official underlined.

According to HRADF sources the main contenders for the privatization project were formally informed with a letter on Wednesday evening that Greece intends to sell a 51 percent stake of PPA shares in coming months instead of 67 percent as initially planned and the other 16 percent gradually over a four year course after completing certain works in the port's development and expansion.

The decision was made after marathon consultations with the government and unionists who oppose the privatization, Greek media, such as "Kathimerini" (Daily) newspaper reported.

According to the media reports the interested sides were given a deadline of September to submit their final bidding offers. Under the new timetable the privatization should wrap up in the first trimester of 2016. Endit