Agreement between PPA SA and PCT SA for new investments at the Commercial Port of Piraeus with a budget of 230 million Euro.
In order to enlarge the container terminal of the commercial port of Piraeus, the administrations of PPA SA and SEP SA co-formulated a practical procedures amicable settlement, which will be shown to the Boards of Directors of both companies the week after next.
Based on this agreement, PCT SA undertakes (a) to construct the western part of Pier III, (b) to construct - on behalf of PPA SA - the new terminal Petroleum piers and their networks, (c) to enhance Pier II with 12 E-RTG's, to increase its capacity, (d) to enhance the East and West Pier III with equipment of at least 7 Super Post Panamax Cranes and 16 RMG's, to be able to service new generation ships. (e) to finance all of the above projects to the tune of 230 million Euro, (f) to continue to pay the PPA the provisions of the Concession Contract for annual consideration, (g) not to abolish the minimum guaranteed return, but adjust the payment based on economic indicators (GDP) due to the change of economic data on the composition of loads of original contract (h) produce or expand the letters to cover project construction of West Pier III and (i) along with the above projects, to increase the capacity of the container terminals by 3.700.000 TEUs to 6.200.000 TEUs annually.
The duration of the Concession Agreement remains unchanged for all projects (until 2044). The new Western Pier III will be operationally ready by 2020.
The conventional text has been agreed to be entered into (a) the General Meetings of shareholders of both companies, (b) the Auditors Court, (c) to provide information to the relevant European institutions and of course (d) to be filed in Parliament, after it is transformed as a private agreement amendment to the Concession Agreement by counsel of both sides in the coming days.
Both sides expressed satisfaction with the new investment and the formation of the Concession Agreement through amicable settlement, which converts the container port into one of the most modern and large commercial ports in Europe.