A landmark contract for the Helleniko real estate project may have been ratified by a wide Parliament majority on Wednesday, yet more work remains before bulldozers actually arrive at the coastal southeast Athens site, especially for ministers.
Pending issues that need resolution ahead of a transfer of shares from a state-owned holding company that retains ownership of the property to the consortium that will assume the massive redevelopment include licensing for a new casino at the site and an environmental impact study.
Relocating the greater Athens area’s sole casino from atop a mountain summit overlooking the Greek capital to a move attractive location, or even issuing a second gaming license, is deemed as crucial towards ensuring the economic viability of the investment. Nevertheless, redrawing zoning provisions for a new casino requires a legislative act, meaning drawing up new legislation and passing it through the legislative process in a rapid manner.
A timetable extending to November 2016 has been cited, with the first payment by the consortium of 300 million euros to the Greek state ready for disbursement only once the pending issues have been resolved.
Another issue deals with the relocation of several state services from the current site, which for decades hosted Athens’ airport, a couple of military bases, including a facility once used by the USAF, the current civil aviation authority, a police precinct and even a detention center. The large tract of land also hosted facilities, most now abandoned, for the 2004 Athens Olympic Games.
Although the draft bill approving the contract and the concession terms was overwhelmingly ratified, with only the ultra-nationalist and the communist political parties in the legislature voting against, earlier debate was telling on how some the leftist government’s ministers viewed the memorandum-mandated privatization.
Minister of State Alekos Flambouraris claimed that the current government “significantly improved” the terms of the contract in negotiations with the consortium, led by Athens-based Lamda Development.
The minister said the current government increased the investment by 1.5 billion euros in relation to the previous deal, “during a time where we have 1.5 million unemployed, and where austerity reigns, we choose to support fair (economic) growth.”
Conversely, another two top SYRIZA ministers expressed diametrically opposing views of the privatization, while in the end voting in favor.
Finance Minister Euclid Tsakalotos said the agreement was a “political compromise” with Greece’s creditors, whereas Culture Minister Aristidis Baltas referred to an “acknowledged defeat (for his government and its ideology) by more powerful alliances”.
