Yesterday, we “celebrated” the Greek government decision to seal the deal and give the privatization of the country’s top 14 regional airports to German-Greek consortium Fraport-Slentel. Yesterday, we welcomed German state-run enterprise FRAPORT for ‘helping Greece’ as some German media underlined. Today, FRAPORT seems to reconsider the offer it made to Greece in October 2014. “One billion two million euro and 330 million for investment? I don’t think so…” Fraport seems to think.
See also KTG’s article: German FRAPORT wins bid for Greece’s 14 top regional airports
According to daily Kathimerini, the German- Greek Fraport-Slentel Consortium now asks from the Greeks more guarantees, even though these are not specified, at least in the Kathimerini report.
“Kathimerini understands that the consortium is asking for more guarantees from the Greek government following the uncertainty of the last few months. The group is also facing greater financing costs due to the higher country risk associated with Greece.
This has raised doubts about whether Greece will able to reach its bailout target of receiving 1.2 billion euros from the agreement by the end of the year.
“The Greek government’s decision is not tantamount to the conclusion of a contract but rather offers a basis for the resumption of negotiations,” Joerg Machacek, a Fraport spokesman, told Bloomberg on the phone on Tuesday. “We are building up from where we left off.” (via Kathimerini)
The government approval is “rather a basis for the resumption of negotiations”? LOL This reminds me the good old German comments during the Greek crisis negotiations the first half of 2015. Every Greek proposal sent to eurogroup and other Troika – Institutions, the reaction mantra was always: “The Greek 2- to 47-page austerity proposal could be a basis for negotiations.”
My mean cat, who is just half-Greek, asked me this morning “Why did Fraport-Slentel keep its offer alive if it had decided otherwise?” and she reminded me that end November 2014, the Fraport-Slentel Consortium was officially proclaimed the ‘prefered bidder’ by the Greek Privatization Fund (HRADF).
PS Now, I suppose, all mean two- and four-legged Greeks are digging in the Consortium-Greek Privatization Fund tender conditions to see if there is a clause that fines the bidder if he withdraws the offer after announced as ‘tender winner’.
Fra-port has turned into Fra-ppe, I’m afraid…
UPDATE: Greek government reacted to FRAPORT’s new conditions and gov’t sources said that “if FRAPORt wants renegotiation, these will be comprehensive and not just on the issues raised by the company.”
The same government source said also that “the completion of the lease of the 14 regional airports, without altering the terms was agreed by the previous government, and it was (understandably) one of the explicit conditions of the 12th July agreement” with the creditors.
“The government complied fully with the agreement on August 18, and published the relevant decision on Official Gazette No. 240.V / 2015,” the source added.