In the coming days, the bill of the Ministry of Environment and Energy (YPEN) is expected to be published, which provides for the expansion of both EYDAP and EYATH within the framework of the national water strategy.
This is a critical step toward the rational management of water resources, which is expected to pave the way for a new wave of investments in the sector, contributing to the reduction of water supply tariffs that burden consumers in certain areas.
At the same time, large groups, such as GEK TERNA and AKTOR, are taking positions in the sector, while EYDAP's stock is recording an increase approaching 50% over the last six months.
The discussions with the mayors
Sources from YPEN tell Euro2day.gr that Minister Stavros Papastavrou is in the final stage of contacts with mayors on issues concerning water as the bill is being finalized.
Addressing water scarcity is high on the Minister's agenda. It is recalled that on Friday the minister signed the decision to include mainland municipalities and DEYA utilities from Central Macedonia and Epirus in the program “Interventions for the provision of drinking water and water management”.
The decision concerns seven projects for the reduction of water scarcity, with a total budget of 10.2 million euros, and is added to the recent decisions to support nine island and nine mainland municipalities with 26 projects, raising the total amount of interventions to more than 41 million euros for 33 projects in 25 municipalities.
On another front, the public consultation on the National Water Strategy continues and is completed on July 22.
The new investments
Today, about 740 municipal enterprises operating throughout Greece are involved with water. In an effort to make their management more effective, and to address phenomena such as high network leakages, about 60 of these municipal enterprises will be integrated into EYDAP and EYATH.
Specifically, EYDAP will expand into Euboea, Boeotia and Phocis, while Chalkidiki will be integrated into EYATH. Through this process, the two large water supply and sewerage companies will take over the network of the 60 local enterprises. Sources also state that their workforce will move to EYDAP and EYATH, without any layoffs.
It is noted that in other European countries similar consolidation reforms have been completed, such as in Italy and Portugal.
Funding
In Greece, estimates speak of a broader restructuring that is expected to be completed within a short period of time.
At the same time, the goal is for water investments to be launched in these areas, as the municipal enterprises do not have the ability - due to their small size - to secure financing for the necessary projects.
Sources underline that the European financing funds do not finance such small entities and that “essentially, this is also pressure from Europe: if larger water companies are not created, it will not be possible to secure the required capital”.
Beyond whatever new investments are carried out, it is noted that EYDAP is currently running an investment program worth 2.5 billion euros.
Moves by the major “players”
GEK TERNA and AKTOR have their eyes on this investment environment. Recently AKTOR announced cooperation with Suez International while the Greek group places water management among the high-value sectors as it moves forward with plans for a capital strengthening of one billion euros.
At GEK TERNA, the group has entered EYDAP's shareholder structure by acquiring 13% of the company, with Mr. Peristeris speaking of a strategic decision.
Meanwhile, EYDAP shares are outperforming, recording gains of around 47% over the last six months, in contrast to the stock of EYATH, which is posting an increase over the same period.