Trade with Greece
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November 2014. Priority was also given to smaller
properties of, nonetheless, high investor interest,
mainly in tourist areas (Rhodes, Corfu, Chalkidiki,
Porto Heli etc.). Tendering procedures were very
slow, and as a result none of the above develop-
ment projects has begun till this date.
The main problems that emerged during the
course of the tenders and the implementation of
the agreements are related to technical issues,
such as environmental constraints, the delin-
eation of areas as forested, the definition of
coastal zones and coastlines, the completion of
environmental impact studies, Special Spatial
Development Plans of Public Properties and zon-
ing plans, and the definition of land uses (legal
issues, such as encroachments, contestations,
etc.), which result in continuous appeals to the
Council of the State against decisions taken
throughout the entire process. Moreover, accord-
ing to the Annual Report of the Bank of Greece,
the adverse economic environment of the past
few years and the conditions of political uncer-
tainty that prevailed during 2015, led to further
delays or postponements in the forwarding of new
projects and the signing and implementation of
existing contracts. At the same time, as stipulated
by the new Memorandum of Understanding, the
government is committed to create a new fund for
the utilisation of public real estate. After the new
fund is formed in the first half of 2016, its respon-
sibilities and targets will be specified and the pri-
vatisation programme will be redrafted. Prime
tourist real estate, marinas, as well as former
Olympic properties, for which preliminary work
has already been carried out by HRADF, will be
the object of the most important new tenders and
agreements that the new fund will be called to
finalise. Undoubtedly, the importance of expedit-
ing and implementing the privatisation and real
estate utilisation programme is not limited to rais-
ing operating revenues. The benefits are multiple
and are expected to have a multiplier effect on the
economy. The successful activation of the agree-
ments with operators-investors will be an indis-
putable vote of confidence to the Greek economy
and will demonstrate the state’s determination to
support new productive investments and protect
investors. Already, the finalisation of the tender for
the sale of a 67% stake in Piraeus Port Authority
(OLP SA) in January 2016, as well as the signing
of the new agreement for the development of the
Voulagmeni Astir Palace and the 40-year conces-
sion agreement concerning 14 regional airports in
December 2015, signal the revival of investor
interest in the Greek market. The privatisation of
infrastructures, such as airports, ports, and rail-
ways, along with modernisation and the promo-
tion of the necessary reforms, will be a growth
driver both during construction and during opera-
tion, creating new regional activities, new uses
and capital gains, and enhancing local growth.
Apart from the immediate area of influence, the
