Public-Private Partnership (PPP) & Infrastructure |...

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Επωνυμία εταιρείας January 2012 Public-Private Partnership (PPP) & Infrastructure | Greece 1/2012 Panagopoulos & Partners Editor: Spyros Panagopoulos, LL.M. Lawyer In this issue Open door proce- dure for offshore hydrocarbon geo- logical surveys 1 Rural Broadband PPP project ap- proved Launch of the first competitive dia- logue PPP tender in Greece 2 2 Peloponnese waste management sys- tem PPP to be im- plement via PPP 3 Garage sale of 4 Airbus Jets by the Greek Govt. 3 Launch of the “HELLENIKON” land development project 4 Letter from the EDITOR Welcome to the Public-Private Partnership (PPP) & Infrastructure | Greece newsletter. As a law practice with a long standing of experience in public procurement, PPPs & infrastruc- ture law, P&P is committed to sharing knowledge on the benefits of PPP and sharing best prac- tices with legal and procurement / PPP practitioners. In this issue you will find news and in- sights on the recent activities in the Greek PPP and infrastructure market. This issue highlights recent developments in the Greek Privatization Program and includes up- dates on the progress of the implementation of PPP projects in the areas of IT and waste man- agement services as well as a report on the initiation of the Greek offshore hydrocarbon poten- tial survey program. As always, to inquire about our experience in a particular field, customized services solutions, or to submit a post or comment for a future edition, please contact our newsletter editor using the contact details provided. Spyros Panagopoulos (2.1.2012) International call for participation in the non-exclusive hydrocarbon survey off the coasts of western and southern Greece The Ministry of Environment, Energy and Climate Change announced the first Interna- tional Open Call for Expression of Interest for conducting seis- mic surveys. This is an “Open Door” procedure aiming to attract the interest of the spe- cialized geophysical industry to conduct seismic surveys in offshore areas of the Ionian and South Crete Sea, with an estimated amount of 250 mil- lion barrels of oil reserves. The objective of the planned seismic survey is to acquire process and interpret data, including the reprocessing and interpretation of existing data, in accordance with the most up-to-date standards in the oil and gas industry. The surveys will be conducted on a non exclusive basis (multiclient data), and all costs will be covered by the surveyors. By means of this approach, the experts of the e/p sector are facilitated to explore quickly and efficiently broad areas, using advanced technology to investigate deep oil systems and reveal oil prone geologi- cal structures. These data will assist in the evaluation of the hydrocarbon potential of the above areas and in the pro- motion of a subsequent inter- national licensing round for hydrocarbon exploration and exploitation, which is planned for 2012. All technical and scientific results that will be reached will be property of the Greek government, while the geo- physical companies will retain the right to dispose the re- sults on commercial basis for a number of years, to be agreed with the interested international oil companies, which intend to invest in the e/p of hydrocarbons in our country. Thus, the cost will be shared among the interested parties. Closing date is 90 days after the publication of the call notice (2011/C 353/09) in the OJEU (3.12.2011).

Transcript of Public-Private Partnership (PPP) & Infrastructure |...

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4-5/2009

Επωνυμία εταιρείας

January 2012

Public-Private Partnership

(PPP) & Infrastructure |

Greece 1/2012

Panagopoulos & Partners

Editor: Spyros Panagopoulos, LL.M. Lawyer

In this issue

Open door proce-dure for offshore hydrocarbon geo-logical surveys

1

Rural Broadband PPP project ap-proved Launch of the first competitive dia-logue PPP tender in Greece

2 2

Peloponnese waste management sys-tem PPP to be im-plement via PPP

3

Garage sale of 4 Airbus Jets by the Greek Govt.

3

Launch of the “HELLENIKON” land development project

4

Letter from the EDITOR Welcome to the Public-Private Partnership (PPP) & Infrastructure | Greece newsletter.

As a law practice with a long standing of experience in public procurement, PPPs & infrastruc-ture law, P&P is committed to sharing knowledge on the benefits of PPP and sharing best prac-tices with legal and procurement / PPP practitioners. In this issue you will find news and in-sights on the recent activities in the Greek PPP and infrastructure market.

This issue highlights recent developments in the Greek Privatization Program and includes up-dates on the progress of the implementation of PPP projects in the areas of IT and waste man-agement services as well as a report on the initiation of the Greek offshore hydrocarbon poten-tial survey program.

As always, to inquire about our experience in a particular field, customized services solutions, or to submit a post or comment for a future edition, please contact our newsletter editor using the contact details provided.

Spyros Panagopoulos

(2.1.2012) International call for participation in the non-exclusive hydrocarbon survey off the coasts of western and southern Greece

The Ministry of Environment, Energy and Climate Change announced the first Interna-tional Open Call for Expression of Interest for conducting seis-mic surveys. This is an “Open Door” procedure aiming to attract the interest of the spe-cialized geophysical industry to conduct seismic surveys in offshore areas of the Ionian and South Crete Sea, with an estimated amount of 250 mil-lion barrels of oil reserves.

The objective of the planned seismic survey is to acquire process and interpret data, including the reprocessing and interpretation of existing data, in accordance with the most up-to-date standards in the oil

and gas industry. The surveys will be conducted on a non exclusive basis (multiclient data), and all costs will be covered by the surveyors. By means of this approach, the experts of the e/p sector are facilitated to explore quickly and efficiently broad areas, using advanced technology to investigate deep oil systems and reveal oil prone geologi-cal structures. These data will assist in the evaluation of the hydrocarbon potential of the above areas and in the pro-motion of a subsequent inter-national licensing round for hydrocarbon exploration and exploitation, which is planned for 2012.

All technical and scientific results that will be reached will be property of the Greek government, while the geo-physical companies will retain the right to dispose the re-sults on commercial basis for a number of years, to be agreed with the interested international oil companies, which intend to invest in the e/p of hydrocarbons in our country. Thus, the cost will be shared among the interested parties.

Closing date is 90 days after

the publication of the call

notice (2011/C 353/09) in the

OJEU (3.12.2011).

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Public-Private Partnership (PPP) & Infrastructure | Greece 1/2012

According to a decision of the Greek Inter-Inter-ministerial Committee for Public-Private Partnerships that was issued on 3rd January 2012, the pro-ject “Broadband development in Greek rural areas” will be implemented as a PPP.

Due to its geographical fea-tures, Greece is a country characterized by a significant number of remote and dis-persed residential depart-ments, economically disadvan-taged and scarcely populated. This causes a a significant in-frastructural gap as regards broadband networks, com-pared to the more populated and less impervious areas of the country. The objective of the Greek authorities is to fill the abovementioned gap by providing to broadband infra-structure coverage to a sub-stantial part of the unserved areas of the country as well as reliable and affordable con-nectivity services.

The subject matter of the pro-ject consists in ensuring the coverage of the better part of Greek rural areas, where no broadband network exists, with high-speed network infra-structure and the exploiting of

this infrastructure for a period of 10 years. The value of the project was estimated at 200 million Euros. The rollout of the network requires the use of public funding. The sources of public funding are the Rural Development Program of Greece 2007-2013 (EARFD), the Operational Program “Digital Convergence” (ERDF), and other national funds, to cover specific non-eligible expenses of the above Euro-pean funds. The contract will be awarded through a trans-parent tender procedure.

This is a key-project for the Greek regions that is expected to boost significantly the de-velopment of local business, contribute to the creation of new workplaces and foster innovation. According to the Minister for Development, Competiveness and Shipping, the digital convergence of the ICT infrastructure of all Greek regions with the European standards is the only way to strengthen the competiveness of the Greek economy that will help Greece come out of the financial crisis. As he stated, “We believe in the human capital of the entire Greece and we support pro-

jects that will create new business opportunities for the youth of the Greek regions”.

Since the Project will be im-plemented as a PPP, the rele-vant legal basis consists of laws no 3389/2005 on PPPs and no 3614/2007 that regu-lates the management of the “National Strategic Reference Framework 2007-2013”. In order to ensure the effective use of public funding instru-ments and guarantee the efficient procurement of the Project, the coordination of the implementation process was assigned to the Special Secretariat for PPPs.

Finally, it is noted that that the European Commission has already assessed the measure "Broadband devel-opment in Greek rural areas" and decided [SA.32866-C(2011)], not to raise objec-tions as the State aid con-tained therein is compatible with Article 107 (3) c of the TFEU . Decision available at:

http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_32866 Source: Greek PPP Taskforce: http://www.sdit.mnec.gr/en

(4.1.2012) PPP project "Broadband development in Greek rural areas" approved

(30.12.2011) Launch of the first competitive dialogue PPP procurement procedure in Greece

A contract notice inviting appli-cation to participate in of a com-petitive dialogue procedure for the implementation of the Pelo-ponnese waste PPP project was published on Tenders Electronic Daily (TED) database on the January 4th 2012, by the Re-gional Authority of Peloponnese. The scope of the project is the design, financing, construction, maintenance and operation of all facilities of an integrated waste management system in

the region of Peloponnese. The Private Partner shall be

selected through competitive

dialogue and shall be con-

ducted in accordance with

article 13 of Law 3389/2005

(Article 29 of Directive

2004/18/EC). Notably it is the

first time that a Greek con-

tracting authority post for the

procurement of a PPP project

though a competitive dia-

logue procedure.

The tender documents of the

1st phase of the competitive

dialogue (contract notice &

PPQ) are available only in

Greek. Unofficial translation

is available upon request.

Closing date is February 29th

2012.

The contract notice is avail-

able in the TED database at:

http://ted.europa.eu/udl?

uri=TED:NOTICE:1582-

“We believe in the human

capital of the entire

Greece and we support

projects that will create

new business

opportunities for the

youth of the Greek

regions”

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Public-Private Partnership (PPP) & Infrastructure | Greece 1/2012

The Inter-ministerial Commit-

tee for PPPs issued on the

28.12.2011 a decision approv-

ing the implementation of the

project “Design, Financing,

Construction, Maintenance

and Operation of the Inte-

grated Solid Waste Manage-

ment System in the Region of

Peloponnesus via a Public Pri-

vate Partnership (PPP)”

The Region of Peloponnese is

dynamically proceeding to the

solution of the long-lasting

problem of waste manage-

ment, aiming at regional eco-

nomic development, creating

new opportunities for invest-

ment and employment.

The annual volume of waste

has been estimated at 200.000

tons, while all proven tech-

nologies that meet the targets

set by Community Directives

will be allowed, providing

transparency and safeguarding

public interest. It is foreseen

that the project will be co-

funded by EU funds. The pri-

vate partner that will be se-

lected will enter into a PPP

contract with the Regional

Authority of Peloponnese with

an indicative duration of 28

years. After the aforemen-

tioned Integrated Waste Man-

agement System has started

operating, the Contracting

Authority will conclude peri-

odical availability payments to

the SPV, which the Private

Partner must establish. Avail-

ability payments will last until

the end of the “Partnership”.

The availability payments will

be linked to the quantity of

waste that the Private Sector

Partner will manage as well as

to the availability criteria and

the operation specifications,

as well as to the achievement

of the targets, set by the

Greek and EU regulation.

According a statement deliv-

ered by the Minister for De-

velopment, Competitiveness

and Shipping, the objective of

the Greek government is, not

only to overcome this severe

crisis, but to promote a new

model for development, pur-

suing empowerment of entre-

preneurship and stimulation

of employment. A strategic

plan for development and

revival of the Greek economy

is already in place. Within this

framework, we dynamically

promote PPP projects, espe-

cially in waste management

with EU co-funding.

It is noted that procurement

for a waste management PPP

project in West Macedonia is

already well underway and

new projects for more Greek

regions are being prepared,

including the major project

for establishing and running a

waste management system

via PPP in the Region of At-

tica. Source: Greek PPP Taskforce

http://www.sdit.mnec.gr/en

(28.12.2011) Peloponnese waste management system PPP project

(30.12.2011) Garage sale of four Airbus jets of the former OA

A previous international ten-der in late 2009 was declared void after the highest bidder (Cirrus International), which had offered $ 97 million, withdrew its interest due to inability to finance the sale.

DEAA issued a statement

declaring that that the trans-

action was made within the

framework of the privatiza-

tion program, stressing that

the sale constitutes an obliga-

tion undertaken by the coun-

try in compliance with the

cooperation memorandum

signed with the troika (EC-

ECB-IMF), which is constantly

examining Greece’s progress

regarding its deadlines. Fur-

thermore, DEAA pointed out

the fact that the airplanes’

value had decreased signifi-

cantly as they were laying

dormant and not being used

since 2009 and emphasized

that the international market

for this type of airplane is

shrinking because the planes

are considered high-

maintenance, so their pro-

duction has been interrupted

by the Airbus Company. Also

included in the statement

was the concern that any

further delay beyond the

deadline set by the medium-

term program could carry the

risk of being forced to sell the

airplanes in question at an

even lower price.

Source: Greek Ministry of Finance

http://www.minfin.gr/portal/)

The Greek Government sold four Airbus A340-300 passen-ger jet aircraft that were pre-viously leased by former state-run Olympic Airlines SA.,

The decision was issued on 23.12.2011 by the Inter-ministerial Committee on Pri-vatization and Restructuring (DEAA) and the highest bidder was the US based (MI) aircraft trading company Apollo Avia-tion Group, that offered a price of € 31 million ($ 40.4 million).

The decision of DEAA was criticized heavily for achieving a very low price. Note that the four jets were purchased be-tween 1997-1999 and the initial valuation amounted to € 180 million. The Greek state had been trying to sell the planes since November 2010.

the objective of the Greek

government is, not only to

overcome this severe

crisis, but to promote a

new model for

development, pursuing

empowerment of

entrepreneurship and

stimulation of

employment.

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(2.1.2012) Invitation to submit an expression of interest for the acquisition of a majority of the share capital of HELLINIKON S.A.

The Hellenic Republic Asset Development Fund Société Anonyme (HRADF) is a so-ciété anonyme incorporated under Law 3986/2011), the entire share capital of which is owned and controlled by the Hellenic Republic. HRADF is entrusted, in the context of the Privatization Program of Law 3985/2011 “Medium-Term Fiscal Strat-egy Framework 2012-2015”, with the development of the assets of the Hellenic Repub-lic as well as the assets of companies, the share capital of which are fully owned, directly or indirectly, by the Hellenic Republic or any pub-lic law entity or body. Within the framework of said Priva-tization Program of Law 3985/2011, the HRADF has decided to sell a majority of the share capital of Hel-linikon Société Anonyme ("Hellinikon S.A."). The Fund has announced its aforemen-tioned decision by way of publication in the Greek and international press on 8 De-cember 2011.

Hellinikon S.A. is a société anonyme that was incorpo-rated under Law 3943/2011 as a company wholly-owned at the time of its establish-ment by the Hellenic Repub-lic. Currently the entire is-sued share capital of Hel-linikon S.A. is wholly owned by the HRADF. The object of Hellinikon S.A. is to develop and manage an area of land located on the site of the former Athens international

airport of Hellinikon, which comprises various land plots with a total combined area measuring approx. 5,250,000 sq.m.

In addition, Hellinikon S.A. is entitled to, and in the process of: acquiring ownership or other rights in rem on the en-tire Airport Site or part thereof, such transfer to be effected by means of a law to be adopted by the Hellenic Parliament; and acquiring own-ership or other rights in rem as well as contractual rights on other land and real estate property assets located adja-cent to the Airport Site in or-der to manage and develop the Airport Site and the Addi-tional Sites as a whole. The Additional Sites are currently envisaged to include at least the coastal front of the Agios Kosmas area, including its sports facilities and the ma-rina, the total area of which is approx. 956,000 sq.m. and includes a waterfront of approx. 3.5 kilometers. As such, the entire Site has a total area of approx. 6,200,000

sq.m.

The Site’s size and location present unique urban re-generation and develop-ment potential for establish-ing a mixed-use landmark location of national impor-tance and international visi-bility and a metropolitan pole of international appeal and recognition, enhancing the attractiveness of the Athens greater area both as a tourist destination and as a business, and leisure hub in the Eastern Mediterra-nean region whilst remain-ing integrated with the ex-isting urban and infrastruc-ture complex of the Athens, greater area.

The Expression of Interest

must be submitted in hard

copies to the HRADF and

receive a valid protocol

number from the Fund no

later than 17:00 (Eastern

European Time, GMT +2) on

March 30th 2012 at the

premises of the Fund.

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Public-Private Partnership (PPP) & Infrastructure | Greece 1/2012

For any additional information, please contract: Mr Spyros Panagopoulos, LLM Lawyer,

Tel. +30 6974 891989, +30 2310 234498 email: [email protected]

The Fund’s vision is that

new life is injected into

this sizeable plot

thereby repositioning

Athens as a destination

city while, at the same

time, offering its

inhabitants/visitors a

new pallet of

experiences and

fuelling economic

activity

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Panagopoulos & Partners Law Office

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Please note that this document and information contained herein serve general information purposes only, and the applicability of its contents to

specific situations will depend on the particular circumstances involved. Accordingly, we recommend that readers seek appropriate professional

legal advice regarding any particular issues or problem that they may encounter, before they undertake any action. Readers are thus solely liable

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negligence or otherwise, or for any losses, however caused, sustained by any person.

Panagopoulos & Partners - Law Office Branch | mailing address: 11, Aristotelous st. GR-546 24 Thessaloniki, Greece Phone +30 231 02 34 498 Fax+ 30 231 02 71 609 [email protected] [email protected]

P&P Staff feature

Spyros PANAGOPOULOS is a lawyer, licensed to the Greek Supreme Court and Council of State. He is a partner at the P&P the law office in the fields of public procurement and conces-sions / PPPs law, EU and public law, contracts real estate law. He also focuses on issues related to leasing law, construction and planning law as well as energy law. Activity includes con-sulting and litigation.

Since 2002 he is researcher at the Centre of International and European Eco-nomic Law in the area of EU public procurement law and he advises Greek pub-lic authorities on the application of the EU public procurement and concessions rules. In his capacity as a public procurement & PPPs legal professional, he has participated as expert in a series of technical assistance and institution building projects in the CEE and SEE regions in the fields of public procurement, PPPs and concessions law. Moreover, he has published articles in legal periodicals in the fields of European public procurement, concessions and PPP law and has participated as lecturer in numerous conferences and training seminars. He is a member of the UNECE roster of PPP experts, the WB Global PPP Network, the Thessaloniki Bar Association, the Greek Association of European Law, the Soci-ety of Construction and Technology Law, the Association of the German-speaking Lawyers of Northern Greece and the Alumni of the German School of Thessaloniki, whereas he participates also in the publication team of the legal periodical “Public Procurement, State Aid and Market”.

Spyros completed his LLB in law in Thessaloniki and subsequently obtained an LLM degree from the Law Faculty of the University of Regensburg. Currently he is a PhD candidate in international construction arbitration. He speaks Greek, German and English.

Specialties

Legal counsel and litigator in the following fields: EU and public law, public pro-curement & PPP law, real estate law, construction law, commercial law, with a further focus on energy law.

Panagopoulos & Partners (P&P) was established in 1965 by our managing partner Alkiviades Panagopoulos in an effort to create a multidisciplinary legal practice that offers high quality, expert legal services in European and national law focusing on Business, Civil, Commercial, Real Estate, Construction, Public Procurement & Public Private-Partnerships / Concessions, ICT and Energy Law as well as on legal issues related to the Management of Structural Funds.

We invest in professional ethics, thorough scientific knowledge and research and long standing experience in our practice areas and offer the flexibility of a small and effective team.

Our philosophy is to establish an open and trustworthy relationship with our clients and continuously strive to meet the con-tinuously evolving requirements of the corporate environment for quality and tailor made legal services, with an emphasis on achieving the most beneficial outcome for the client.

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