Anthony S. Papadimitriou A.S. Papadimitriou & Partners Law Firm

Transcription

1 Anthony S. Papadimitriou

2 A. Investing in public sector B. Investing in private sector C. Aspects: challenges and solutions: financial consequences of legal solutions

3 A. Private assets of Greek state: shares in listed private companies (OPAP, LARKO, Asteras Vouliagmenis) and land assets B. Public service companies: ports, water supply (EYDAP), energy (DEH, DEPA), airports, post (ELTA), marinas C. Licenses: gaming, telecoms, roads D. Securitisation of future revenues

4 Issues related to public sector privatisation do not apply. However, many private sector structural reforms will apply to privatised companies: labour flexibility and costs, reserves for retirement, fast track procedures. Many structural reforms already implemented.

5 Select appropriate vehicle: Greek operating company, Societas Privata Europea, Private Company Investment vehicle: Where do you come from? Cyprus, Malta, Luxemburg, USA, off-shore entity (Panama). Double taxation treaties. Merge operating company with investment vehicle: transfer acquisition finance to operating company.

6 Hellenic Republic Asset Development Fund: board and staff. Invest in Greece Agency. Investment advisors Legal advisors Legal Counsel to the State (for specific matters) Interministerial committee. Parliamentary committees? Labour unions? Concerned citizens: Council of State?

7 Challenge: study current applicable procedure Declare interest Pre-selection of candidates Draft contracts and submit comments Fund to approve basic terms Selection of successful candidate Submission of draft contract to Court of Auditors (Ελεγκτικό Συνέδριο) Sign contracts and obtain necessary permits, ministerial decisions, presidential decrees etc.

8 Applies to private investments in principle but of interest if/when additional capex needed. Requirements: size of investment: 100 m or 40 m jobs or 15 m in existing company or 150 jobs. Benefits: one-stop shop and relaxed approvals process. Transparent and quick procedure. Potential to participate in E.U. funding.

9 Currency risk: now remote Taxation: need for tax agreement legislation, constitutional protection under 1953 law Conflict resolution: court delays but possibility to apply for arbitration (need for specific approval by Legal Counsel of State) Council of State: environmental issues, public service concessions - expect delays Competition approval: Greece and EU Public tender not required in principle for privatisations but required if certain thresholds are exceeded after six months

10 Due diligence: request and obtain all necessary approvals, licenses, ministerial decisions and presidential decrees, in advance. Go for the maximum. Political risks: not applicable for private investments. Important for major strategic investments in public service concessions. EU procedures always available as a means of redress. Validity of contract (probably) not in question if proper procedures followed but possibility of liability of Ministers and public servants. Labour unions and concerned citizens.

11 Political will is there. Structural reforms already in place in several important areas. Implementation of some reforms challenged in some areas. Assistance of Hellenic Republic Asset Development Fund and Invest in Greece Agency No more difficult than investing in any other developed country.