Reports: Privatization fund eyes 580mln€ lump sum payment for Athens int’l airport contract extension

Reports in Athens at the beginning of the week purport that Greece’s privatization fund (TAIPED or HRADF) wants a lump sum payment of 580 million euros in order to extend the concession contract for the Athens International Airport, as well as a percentage of the annual pre-tax profits.

The last time negotiations over the contract took place, over 2011 and 2012, the administration of the privatization fund at the time put its demand at 220 million, with the concession holder, Germany’s Hochtief offering no more than 180 million euros.

Additionally, finance ministry officials calculate that an extension of the contract for the airport, officially named the Eleftherios Venizelos International Airport of Athens, will increase the value of the stake still held by the state, and therefore generate more revenue for state coffers in case the shares are sold off. Talks over an extension refer to a date of 2046.

The Greek state holds 55 percent of the airport’s shares, of which 30 percent are controlled by the privatization fund. Two holding companies controlled by Canadian pension fund PSP Investments together hold 40 percent of the shares, while the Copelouzos family holds the remaining 5 percent.