The Ministry of Environment and Energy (YPEN) is expected to publish a bill in the coming days that provides for the expansion of both EYDAP and EYATH as part of the national water strategy.
This is a crucial step toward the rational management of water resources, which is expected to pave the way for a new wave of investment in the sector, helping to reduce water bills for consumers in certain areas.
At the same time, major conglomerates such as GEK TERNA and AKTOR are establishing a presence in the sector, while EYDAP’s stock has risen by nearly 50% over the past six months.
Discussions with mayors
Sources at the Ministry of Environment and Energy (YPEN) tell Euro2day.gr that Minister Stavros Papastavrou is in the final stages of discussions with mayors on water-related issues as the bill nears completion.
Addressing water scarcity is high on the minister’s agenda. It should be noted that on Friday, the minister signed the decision to include mainland municipalities and municipal water supply and sewerage agencies (DEYA) from Central Macedonia and Epirus in the “Drinking Water Supply and Water Management Interventions” program.
The decision concerns seven projects aimed at alleviating water shortages, with a total budget of 10.2 million euros, and comes on top of recent decisions to support nine island and nine mainland municipalities with 26 projects, bringing the total value of the interventions to more than 41 million euros for 33 projects in 25 municipalities.
On another front, the public consultation on the National Water Strategy is ongoing and will conclude on July 22.
New Investments
Today, there are approximately 740 municipal water utilities operating throughout Greece. In an effort to make their management more efficient and address issues such as high network leakage rates, approximately 60 of these municipal water utilities will be integrated into EYDAP and EYATH.
Specifically, EYDAP will expand into Euboea, Boeotia, and Phocis, while Chalkidiki will be incorporated into EYATH. Through this process, the two major water and sewerage companies will take over the networks of the 60 local utilities. Sources also report that their workforce will be transferred to EYDAP and EYATH without any layoffs.
It should be noted that similar centralization reforms have been completed in other European countries, such as Italy and Portugal.
Funding
In Greece, estimates point to a broader restructuring that is expected to be completed in the near future.
At the same time, the goal is to launch water infrastructure investments in these regions, as municipal utilities—due to their small size—are unable to secure the necessary funding for these projects.
Sources emphasize that European funding programs do not support such small entities and that “in essence, this is also pressure from Europe: if larger water companies are not established, it will not be possible to secure the necessary funds.”
Apart from any new investments that may be made, it should be noted that EYDAP is currently implementing an investment program worth 2.5 billion euros.
Moves by the major “players”
GEK TERNA and AKTOR have their sights set on this investment environment. AKTOR recently announced a partnership with Suez International, while the Greek group is positioning water management as a high-value sector as it moves forward with plans for a €1 billion capital injection.
As for GEK TERNA, the group has acquired a 13% stake in EYDAP, with Mr. Peristeris describing the move as a strategic decision.
Meanwhile, EYDAP’s shares are outperforming the market, posting gains of around 47% over the past six months, in contrast to EYATH’s stock, which has risen over the same period.