Privatization agency blames consultants for €740 mln gap in Athens airport contract

Officials from Greece's privatization agency this week blamed "wrong estimates" by consultants involved in negotiations to extend the Athens International Airport (AIA) concession for a 740-million-euro "gap" between an initial offer and the final 1.38-billion-euro price tag.

The significantly raised payment came after the EU Commission's competition directorate expressed reservations over the extension deal, whereby the current concessionaire would retain the management of Greece's biggest and busiest airport until 2046.

A main opposition New Democracy (ND) MP had also tabled a question in Parliament regarding the difference between the initial offer of 600 million euros, and the ultimately agreed-to 1.38 billion euros.

In response, but without going on the record, officials from the Hellenic Republic Asset Development Fund (HRADF) pointed out consultants in the negotiations mistakenly used data and forecasts dating to 2015 to calculate the airport's value, circa 2018.

Negotiations between the fund and the concessionaire over a 20-year extension commenced in March 2016 after an initial decision by the owner of the facility, the majority state-owned AIA, to accept an offer of 483.87 million euros.

The Greek state owns 55% of AIA, with Canadian crown corporation Public Sector Pension Investment Board (PSP Investments) owning 40 percent, and the Athens-based Copelouzos group retaining the remaining 5 percent.

Read more at naftemporiki.gr

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