Greek budget 2024: Record revenues at 5.7 billion from privatizations

A record year for revenues from privatizations is what is expected in 2024.

The state budget foresees revenues of 5.770 billion euros. Of these, 970.4 million euros will be an additional source of revenue from project tenders which are estimated to be completed next year.

The roadmap

In total, based on the Hellenic Republic Asset Development Fund-HRADF roadmap included in the text of the state budget, of the 5.770 billion euros, 4.751 billion euros will come from tenders for which binding offers have already been submitted and the first disbursement of the amounts will take place within 2024.

However, for the next year the privatizations that will bring mammoth revenues are the concession of Attica Road (3.270 billion euros), with the price to be paid in the last quarter of 2024, and the concession of Egnatia Road (1.350 billion euros) with amount to be disbursed in the second quarter of the following year. GEK TERNA has emerged as an investor in both concessions.

For 2024, another approximately 135 million euros will come from the sales of the ports of Heraklion, Crete and Volos, while revenue is also expected from the payment of part of the price for the Regional Airports.

HELLENiQ ENERGY and Athens International Airport

In the budget, no mention is made of the further shareholding of HELLENiQ ENERGY, nor of the entry of Athens International Airport into the Athens Stock Exchange.

It is not excluded that these revenues are calculated at 890.1 million euros with the code “projects in preparation stage”.

The receipts of 2023

In 2023, 406.4 million euros were collected from privatizations.

They came from the second installment (166.65 million euros) of the price for Ellinikon, the dividend of 86.5 million euros from AIA and from the 84.2 million euros from the sale of the port of Igoumenitsa.

This year’s privatizations

According to the state budget, the following tenders are underway within 2023, in various phases of completion:

· sub-concession of a multi-purpose station in the Philip II port of the Kavala Port Organization,

· sale of shares of the Heraklion Port Authority,

· sale of Volos Port Authority shares,

· sub-concession of the Mega Yacht marina – Corfu of the Corfu Port Authority,

· concession of Argostoli marina,

· concession of Pylos marina,

· concession of the Attica Road,

· concession of Egnatia Road,

· sale of shares of Athens International Airport SA (HRADF 30%),

· sale of shares in DEPA Emporia SA (HRADF 65%),

· sale of shares of HELLENiQ ENERGY SA – formerly ELPE (HRADF 35.5%),

· ELECTRONIC AUCTION 10 (E-AUCTION X) (43 properties),

· long-term lease of the Olympic Center of Markopoulo,

· sale of former construction sites of the Rio – Antirrio ABK 314 link project,

· sale of property at Ververonda location in Porto Heli,

· sale of property in Sani Halkidiki,

· sale of a property in Nea Heraklia, Halkidiki (ABK 254),

· lease of camping property Kammenou Vourla – Koniavitis,

· rental property coast and camping of Agia Triada,

· rental property coast and camping Posidion Kassandra,

· lease of the Kammeni Vourla – Loutropolis thermal spring property,

· lease of Thermopylae thermal spring property,

· lease of the Ypatis thermal spring property and

· Vasilitsa ski center rental.

Finally, the maturation of the concession/subconcession tender procedures for the following is also in preparation:

· regional ports and marinas: Itea, Skiathos, Mandraki Rhodes marina, Lefkimmi and Imerolia marina sub-concession of the Corfu Port Authority, etc.,

· other properties included in the TAIPED portfolio, such as tourist properties with thermal springs, etc.

The twelve years

During the operation of HRADF from 2011 to 2023:

59 projects were implemented with the submission of binding offers, with a total value of 14.910 billion euros,

revenues were collected (on a cash basis) from completed transactions, with a total value of 8.478 billion euros.

It is noted that the difference of 6.431 billion euros lies, on the one hand, in the planned allocation of installments for projects, in which the financial closure has already taken place and, on the other hand, in projects for which there is a binding offer and the financial closure is expected in the next year.

In addition, it is noted that beyond the total price paid for an asset, investors, depending on the type of transaction and as long as the nature of the asset allows, are committed to a minimum amount of investment and development programs.