“Fillets” that are about to become stale!

The economy team is hoping for a miracle in order to reach the 50bil-euro aim from privatizations, 35-40 of which must come from real estate.  

It is indicative that from the real estate which is high on the list, few cases can be utilized immediately in order to collect the 10-15bil requested until next year.

The first among 400 candidate properties for immediate utilisation is Elliniko. But every form of investment in the area faces huge reactions mainly from citizens, local bodies and neighboring municipalities. That’s where the plans for an F1racetrack stumbled.  

In his interview in Proto Thema, Deroose estimated that the state would collect 5bil euros, but the amount given by the Arab investors includes the whole investment and not just the forfeit. As government parties observe, if the project is given directly to the Qatar investors and there is no international competition to raise the price or to bring in other investors (who might propose a different investment), then the public funds will receive much less.  

The second case is the marina at Vouliagmeni, which is at an advanced stage of developments but is running up against similar reactions by local leaders. However, the revenue from such cases is doubtful unless it is accompanied by changes of usage, as in the case with Floisvos. It is no coincidence that in other marinas where the commercial utilisation of the site was not allowed, the developers  are slow to pay their rent, pushing for a renegotiation to allow for the creation of recreational areas, not only the mooring of vessels.

Afantos in Rhodes is also considered a "fillet", is taking its turn in attracting investors and can host a large tourist investment. However, investment interest and the financial exchange for the state will be limited as long as there is an army firing range next to it.

In general, in the calculations of the value of real estate and SOEs for sale, only the positive value is mistakenly added up, as many of those do not add any real interest, are trespassed on and occupied by individuals and municipalities, have prohibitive investment ratings for use of land, require high costs for old and new expropriation or the creation of national infrastructure in order for them to be accessible and useable, are under the jurisdiction of three, five or 12 relevant bodies – without counting being politically beholden and the micropolitical cost, bribes and the interlocking local or supra-local interests, etc.

This means that from any positive value one estimates (scientifically or even arbitrarily), they will also have to subtract negative values that will be added on to the final price.

Thus, officials from the government and ND, recognize that the 50bil aim might remain unattainable but are counting on collecting a large part of it. The problem now is that the amount have been added to the Memorandum a binding way and if not collected, it might lead to unpredictable consequences since it will have to be found through other revenue sources…