The Hellenic Republic Asset Development Fund is expecting to raise about €20 billion from privatizations over the coming years
Established in 2011, the Hellenic Republic Asset Development Fund (HRADF) manages the privatization of state-owned assets as part of Greece’s restructuring program and to pay off government debt. To date, HRADF has raised about €9 billion in revenues and there are expectations to receive another €20 billion over the next few years through concession payments, dividends and capital expenditure.
CEO Riccardo Lambiris points out another major success for HRADF has been the ability to attract investors for smaller projects, which have had a profound impact on local community development. “We’ve had a lot of success with big assets that have brought in big revenues,” says Lambiris. “But we’ve also had many significantly smaller successes, which fall below the radar. For instance, we have thermal springs projects, and we’re making a big push there.” While these projects only bring in a few million euros, he adds, they provide a significant economic return for local communities.
In 2020, HRADF is expected to rake in €2.4 billion in revenue, namely from two large projects: a selloff of a 30% stake in the Athens International Airport and the full privatization of major Greek gas company, DEPA. However, these projects still represent just a fraction of the privatization portfolio that HRADF is managing. “Currently, 10 privatizations are active and we expect this number to reach 15 by year-end,” says Lambiris. “We have 10 regional ports, where there will be a lot of developmental projects. And there are marinas that we are preparing, like in Rhodes or Mykonos,” Lambiris observes.
For sure, the privatization program’s success can already be seen through its economic impact. “One of the key lessons learned over the past few years is that the road to inclusive growth comes through investment,” says Lambiris. “I think some of the privatizations we have done have proven this point.”