COSCO Says Greek Draft Bill Violates Terms of Landmark Piraeus Port Deal



COSCO

The government submitted a bill for the approval of a concession agreement with Chinese multinational  COSCO on Wednesday. The draft legislation brought to Greek Parliament allows the Chinese shipping giant to acquire a majority stake in Piraeus Port (OLP), following the approval of the deal by Greek Parliament through fast-track procedures. The goal is to approve the deal on Friday, before Greek Prime Minister Alexis Tsipras heads to China for an official visit.

On April 8, Greece had signed an agreement worth 135 million euros to sell a stake of the Port of Piraeus to COSCO. The multinational, however, has expressed disagreement with several points in the tabled bill that contains the contract for the landmark deal that transfers a majority of the Piraeus Port Authority’s shares.

COSCO has sent a letter to the Hellenic Republic Development Asset Fund stating that the bill is in “violation of the basic terms” of the agreement signed. The letter states that the draft bill is in opposition to the basic conditions of the specific agreement, and with figures on which the financial offer by the company was based for the purchase of the port.

The Chinese group believes that the bill’s passage can cause “damage” and is demanding a restoration of the original provisions of the contract.