Following the cancellation of the planned sale of Alexandroupoli’s northern port, Greece has secured €24 million ($26 million) in funding from the European Union to enhance its facilities, with the aim of transforming it into a regional energy hub.
The Hellenic Republic Asset Development Fund (HRADF), responsible for divesting state enterprises under the conditions of three international bailouts totaling €326 billion ($353 billion) from 2010 to 2018, had initially been tasked with overseeing the sale.
Reuters highlighted that Alexandroupoli, situated near Bulgaria and Turkey, has been utilized by U.S. military vessels to unload munitions and transport them to the eastern flank of the NATO Western alliance.
Greece’s Gastrade company operates a floating gas and re-gasification unit at the port, as the country’s significance in storing and transporting Liquefied Natural Gas (LNG) to Europe continues to grow.
Additionally, Greece and Bulgaria have expressed interest in reviving a pipeline project to transport crude oil from Alexandroupoli to Bulgaria’s Black Sea port of Burgas, as noted by the news agency.
The EU funds will be allocated to dredging works and the construction of road infrastructure, as stated in a press release by HRADF. The fund also mentioned that an advisor will be appointed to develop a business plan for the port.
In November 2022, the New Democracy government decided to halt the sale of a 67% stake in the state port, recognizing its strategic, geopolitical, and energy significance for the country. Prime Minister Mitsotakis stated, “Under the present circumstances, Alexandroupoli holds such immense strategic, geopolitical, and energy importance to our nation that it should remain under Greek jurisdiction.”
This decision was made two months after Greece received two binding bids for the majority stake, following an initial submission of four tenders. An HRADF source at the time emphasized that Russia’s invasion of Ukraine had increased the value of Alexandroupoli, positioning it as a vital NATO weapons facilitator.
Source : National Herald