COSCO Greece says Piraeus port sale terms inconsistent with deal

Piraeus Port Authority SA

29/06/2016 19:59

ATHENS, June 29 (Reuters) - COSCO Greece objected on 
Wednesday to terms submitted to parliament for the sale of 
Piraeus Port to China COSCO Shipping, saying they were 
inconsistent with those previously agreed with the Greek 
privatisation agency. 
    Greece sealed the sale of Piraeus Port Authority  OLPr.AT  
to China COSCO Shipping Corporation  601919.SS  in April, a 
major step for the bailed-out country in meeting the demands of 
international creditors that it step up privatisations. 
    Under the 368.5 million euro (£298 million) deal, COSCO will 
buy 51 percent of Piraeus for 280.5 million euros and the 
remaining 16 percent for 88 million after five years and once it 
completes investments of 350 million euros over the next decade. 
    The terms of the deal were submitted by the country's 
shipping ministry to parliament for approval on Tuesday. But, 
COSCO Greece said in a letter to lawmakers seen by Reuters that 
key elements of the deal appeared to have been altered. 
    "The content of the specific plan is a complete reverse of 
what was agreed between COSCO HK and TAIPED (HRADF)," an email 
sent by COSCO Greece said, referring to the country's 
privatisation agency. 
    It said that 'key terms' on which COSCO's offer was based, 
had been erased. It included an obligation by the state to 
approve project licensing within a specific timeframe. 
    A lack of such guarantees, the COSCO note said, would have 
materially affected the amount it bid for the project, and 
possibly affected the submission of a bid altogether. 
    Shipping Minister Theodoris Dritsas acknowledged that there 
were differences, but said the government had the right to make 
changes and the ministry was willing to make improvements.  
    "The government will look into it, it will look into the 
objections and will probably consider making improvements," 
Dritsas told lawmakers. 
    The port, a gateway to Asia, eastern Europe and north 
Africa, handled 16.8 million passengers and 3.6 million 20-foot 
equivalent units (TEUs) of containers in 2014. COSCO has been 
operating one of its container terminals since 2009.   
    Lawmakers had been expected to endorse the deal on Thursday, 
before Prime Minister Alexis Tsipras's state visit to China 
which starts on July 1. 
 
 (Writing by Renee Maltezou; Editing by Alexander Smith) 
 ((renee.maltezou@thomsonreuters.com; +30 210 3376439; Reuters 
Messaging: renee.maltezou.reuters.com@reuters.net)) 
 
Keywords: EUROZONE GREECE/PIRAEUS PORT