The economy team is hoping for a miracle to
reach the 50bil euros aim from the privatizations, 35-40 of which must come from real estate. It is indicative that from the real estate that is high in the list, few cases can be utilized immediately in order to collect the 10-15bil requested until next year.
First property among 400 candidates for immediate usage is Elliniko. But every form of investment in the area meets huge reactions mainly from citizens, local bodies and neighboring municipalities. That’s where the plans for an F1 racetrack got stumbled.
In his interview at Proto Thema, Deroose estimated for the state to collect 5bil euros but the amount given by the Arab investors includes the whole investment and not just the forfeit. As government factors observe, if the project is given directly to the Qatar investors and there is no international competition to raise the price or to bring other investors (that might propose a different investment) then the public funds will receive much less.
Second case is the marina at Vouliagmeni that is on an advanced stage of usage but meets similar reactions by local leaders. However, the revenues from such cases are doubtful unless they are accompanied by changes of usage as in Floisvos. It is no coincidence that in other marinas where the commercial exploitation of the environment was not allowed, the exploiters are slow to pay their rents, pushing for a renegotiation to allow the creation of recreational areas, and not only to “tie” vessels.
Afantos in Rodos is also considered a filet and is taking its turn for attracting investors and can host a large tourist investment. However, the investment interest and the financial exchange for the state is small 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, are mistakenly summed only the positive value, as many of those do not add any real interest, are trampled and occupied by individuals and municipalities, have prohibitive investment ratings for use of land, require high costs for old and new expropriation or creation of national infrastructure to be accessed and useable, are involved in the responsibility of three, five or 12 relevant bodies – without counting the political work and petty-party costs, bribes and the interlocking local or supra-local interests, etc.
This means that from any positive value one estimates (scientifically or even arbitrary), they will also have to remove negative values that will be counted in the final price.
Thus, officials from the government and ND, recognize that the 50bil aim might remain unreachable but are betting to collecting a large part of it. The problem now is that the amount is written in a binding way and if not collected might lead to unpredictable consequences since it will have to be found through other revenue sources…
by Kostis Piantzos
source: PROTO THEMA
