Deal for privatization of Greek natgas grid operator collapse

Wednesday, 30 November 2016 19:39
UPD:21:14
REUTERS/DAVID W CERNY

The ministry added that alternative guarantee schemes presented by the consortium are inapplicable within the EU Community framework.

 

Talks for the privatization of 66-percent of Greek natgas grid operator DESFA have broken off between the Greek government, which controls the utility, and representatives of Azerbaijan's state-run Socar and Italy-based Snam.

A press release by the relevant energy ministry said a proposal by the two companies to alter the purchase conditions (downwards) was legally impossible in the wake of an international tender initially won by their consortium.  

The ministry added that alternative guarantee schemes presented by the consortium are inapplicable within the EU Community framework.

Selling off a majority stake of DES.FA -- officially known as the Hellenic Gas Transmission System Operator S.A. -- and its management is a memorandum-mandated milestone, and in the short-term may complicate the closing of the second review of the Greek program (third bailout), given that energy-related issues comprise a still unresolved chapter. 

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