According to a report by the foundation for Economic and Industrial Research (IOBE), the research arm of Greek businesses and industries, the privatization and development of the old international airport plot of Athens at Elliniko, could create in the long run about 50,000 new jobs and boost the country’s gross domestic product by 1.5 per cent.

IOBE’s report drafted upon the request of the state fund responsible for the privitisation in Greece TAIPED, showed that the Elliniko project will create 35,000 jobs during the realization of its development plan in the period from 2014 to 2025. In contrast, if the investment does not materialize, some 14,500 jobs will be lost through the fiscal adjustment measures that will be taken in 2014 and 2015 to offset the fiscal loss resulting from the concession’s failure.

The project concerning what is considered to be the most important property for development in the Mediterranean basin will lead to a 1.2 per cent increase in Greece’s GDP as a result of growing investment demand and private consumption. The external balance will also benefit via the inflow of funds and incomes from abroad, while the concession of the plot after the completion of the tender will give prominence to Greece as a reliable and attractive investment destination.

The impact of the GDP growth will predictably be greater in the Attica region, while failing to concede the property for development would entail fiscal measures that would lead to the shrinking of GDP by 0.3 per cent in the first couple of years, the report estimated. Therefore, IOBE concluded, “the concession not only has the practical cash objectives, but it will also have beneficial consequences on economic activity and employment.”

In the meantime TAIPED after opening Lamda Development’s bid for the Elliniko plot on Wednesday, considered the offer as being unsatisfactory, and asked the firm to submit a new improved proposal.

TAIPED’s board initially gave the consortium led by the Greek construction company until Monday to submit an improved offer, but Lamda said that was too soon, so the new bid will be now submitted on Wednesday, March 26.

Source: ekathimerini