Log in
A+ A A-

COSCO - PPA Agreement

The European Commission has given the initial "green light" for the completion of the conciliation agreement between Cosco and the Piraeus Port Authority (PPA) for the extension of the West Pier III, in accordance with European official is expected in the next few days.

The official announcement from the Commission is expected even within this week. If confirmed, Cosco will submit a binding offer for a majority stake of Piraeus port Authority (67%), under the relevant contest terms set by the HRADF. The Chinese side had set as a condition for participation in the contest to have a friendly settlement. 
The purpose of a friendly settlement was, inter alia, the revision of the operating activity of the largest container port in the country, with the suspension of payment of minimum guaranteed consideration and the simultaneous withdrawal from the Chinese side of a new investment program of 230 million euros for the construction of the new pier on the west side of the existing pier III. However, the revision of the original agreement between OLP and Cosco was suspended as the Competition Commission of the Federation of Greek ports (OMYLE), accused the two sides for a violation of the original terms of the contract. In this context, the Commission requested additional information. According to European officials, the Greek side has provided the necessary clarifications in writing and after successive meetings in Brussels and Athens, the European Commission concluded that the new contract is consistent with Community law.