By Costas Paris
LONDON--Greece has told creditors it expects to raise at least
EUR500 million ($545 million) from the privatization of the Piraeus
port, according to Greek officials.
The privatization plan has been controversial, and politicians
in Greece's new leftist-led government have publicly expressed
conflicting signals about whether it would go ahead, spooking
creditors. Privately, however, senior Greek officials have said it
would proceed.
The decision to disclose to creditors the expected proceeds from
the planned sale is the latest and clearest sign yet that the
government in Athens plans to go ahead.
Greek officials also told creditors they will seek to privatize
operating concessions at 14 regional airports, these officials
said.
Greece's previous government has been seeking to sell a 67.7%
stake in the Piraeus Port Authority. It would be one of Greece's
biggest divestments, part of an ambitious privatization plan agreed
to by the previous government and creditors. Creditors have
repeatedly told Athens that the sale of state assets is a must in
any new financing deal.
The port, just a few miles south of the Greek capital of Athens,
is the de facto home of Greece's giant shipping industry and is one
of the largest ports in the Mediterranean.
The government expects a minimum EUR500 million from the sale,
as well as further investments in ship-repair facilities, rail
links, and cruise and ferry docks that could create thousands of
jobs, the Greek officials said.
The shortlist of buyers for the stake includes China's shipping
and ports giant China Cosco Holding Co., APM Terminals, owned by
Danish shipping major A.P. Møller-Mærsk A/S, Ports America Inc.,
the biggest U.S. port operator, and Philippines-based port operator
International Container Terminal Services Inc.
People with knowledge of the situation have said Cosco is the
frontrunner given that it already controls two container terminals
in Piraeus. The Greek government also believes that China is among
only a handful of countries willing to take the risk and invest in
the volatile country, these people said.
Greece's new leftist, Syriza-led coalition government is
scrambling to reach a financing deal with international creditors.
Since being voted into power in February, the new government has
threatened to roll back many of the austerity measures and
reforms--such as privatizations--that the country undertook over
the past five years to secure billions of euros in aid.
Athens and its creditors--including the European Union, the
European Central Bank and the International Monetary Fund--are
holding talks in Brussels over the weekend over proposed Greek
reforms that will yield more than around EUR3 billion this year, in
an attempt to win Athens a new financing package.
On Monday, the talks will be elevated to a more senior level. If
there is an agreement, eurozone finance ministers will then meet to
decide on whether or not to release a new finance package for
Greece.
Write to Costas Paris at costas.paris@wsj.com
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