Greece to privatize port, airports in concession to creditors

By Agnes Lovasz and Paul Tugwell

Greece will continue with efforts to privatize the country's largest port and regional airports as it seeks ways to attract investment for other state assets, Economy Minister George Stathakis said, in a government concession in talks with its creditors.

The privatization process that is already underway for the Piraeus Port Authority SA, operator of Greece's largest harbor, and for 14 regional airports will continue, Stathakis said today in an interview in Tbilisi, Georgia. "We're trying to revise some elements of these privatizations in order to improve them and I think we'll get a sensible agreement for both."

A sale of the Piraeus Port would be a reversal on the part of Greece's Syriza party-led government, which had earlier pledged to block such moves. As part of ongoing negotiations to unlock aid to Europe's most-indebted nation, Greek's European creditors have asked for more specific policy proposals in areas including labor market deregulation, a pension-system overhaul, sales tax reform and privatization of state-held assets. Still, Stathakis said the government doesn't plan to sell other assets at the moment.

The Piraeus Port sale "is part of the bailout negotiations," and the fact that the government "agrees to privatize the port is a compromise to creditors," government spokesman Gabriel Sakellaridis told reporters in Athens Thursday.

Fraport venture

A venture led by Fraport AG won the right in November 2014 to use, operate and manage the 14 regional airports after it offered 1.2 billion euros ($1.4 billion) for 40 years and promised to pay an annual, guaranteed leasing fee of 22.9 million euros. Fraport also pledged to make 330 million euros in...