Who will pay for the state’s ADMIE stake?

Kathimerini English - - Focus - CHRYSSA LIAGGOU

The state is cur­rently un­able to pay the amount re­quired for the ac­qui­si­tion of a 34 per­cent stake in the coun­try’s In­de­pen­dent Power Trans­mis­sion Op­er­a­tor (ADMIE), as pro­vided for in a plan ap­proved by the coun­try’s cred­i­tors, which could pos­si­bly lead to a fresh hike in elec­tric­ity rates.

Pub­lic Power Cor­po­ra­tion is sup­posed to trans­fer the 66 per­cent majority stake to an in­vestor through an on­go­ing in­ter­na­tional ten­der, with the re­main­ing 34 per­cent to be sold to the state at a price pro­por­tion­ate to that ar­ranged with the strate­gic in­vestor.

By the end of the trans­ac­tion with PPC the in­vestor will have to sign a share­hold­ers’ agree­ment with the owner of the other stake, which by law should be the Greek state, and the ten­der has now en­tered its fi­nal stage. The so­lu­tion be­ing ex­am­ined by the gov­ern­ment pro­vides for the im­po­si­tion of a con­ces­sion levy for lig­nite re­serves and wa­ter re­sources that the state has con­ceded to PPC for free, to off­set the price that the state must pay to the cor­po­ra­tion for the 34 per­cent share of ADMIE.

Such a plan would re­quire a le­gal amend­ment and would likely cre­ate prob­lems for the gov­ern­ment due to the rise in the cost of power pro­duc­tion and there­fore cus­tomer rates.

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