Portion of Elliniko site to accommodate trash, says alternate finance minister

The prospects for one of Greece?s few privatization projects, the development of the old Athens Airport plot at Elliniko, appeared unclear Wednesday, after Alternate Finance Minister Nadia Valavani said a small portion of the plot would be set aside to create waste management facilities for four municipalities.

The move came as a shock to the privatization agency (TAIPED) and to market professionals, some of whom described it as a ?unilateral action.? Lamda Development, which was granted the development of the plot, had not responded to the announcement by late last night. But there were fears the development could signal complications for the deal.

According to Valavani, the 1.2-hectare plot at Elliniko must be set aside for the trash management of Elliniko, Argyroupoli, Alimos and Glyfada. ?It is necessary for the plot... to be conceded,? she said, adding that action would be taken in coordination with local authorities and Elliniko SA. The plot is a fraction of the entire 620-hectare expanse where developers have been hoping to build a park as well as luxury residential and commercial facilities.

Valavani?s trash plan appears to be one aspect of a major overhaul of waste management policy. The plan, which was unveiled Wednesday by the Environment Ministry, foresees the abolition of all competitions aimed at assigning waste management projects to private companies via public-private partnerships. According to Alternate Environment Minister Yiannis Tsironis, ?interim solutions? will be found for areas with major trash problems, such as Tripoli and Pyrgos. The government wants local authorities to be more involved in waste management and greater emphasis on recycling in new projects.