Filed at Parliament his draft law Ministry of National Economy and Finance entitled “Restructuring of the Hellenic Holdings and Property Company and its subsidiaries”, which promotes the modernization of the role of the Superfund and provides provisions that make the operation of its subsidiaries more flexible according to the PPC modernization model. In addition, the bill promotes the creation of a new National Investment Fund to boost investments.

In particular, the specific draft law foresees the reformation and reorganization of the Superfund and the establishment of a more modern governance model, while promoting the absorption of the T.H.S. and of T.A.I.PE.D. from the Super Fund. In addition, the modernization, according to the “PPC model”, of the operating framework of eight of its subsidiary companies is planned, facilitating the recruitment of staff and critical supplies for their operation (e.g. supply, maintenance and repair of city buses).

In addition, the establishment of an Investment Fund is promoted, which will utilize as its initial investment capital half of the compensation from the reacquisition of E.Y.D.A.P. and of E.Y.A.Th. from the State to finance development investment activities, which will have a significant impact on the social and economic development of the country.

Finally, with an additional provision, it is specified that TAIPED has the right to utilize 50% of the revenue collected from contracts for the utilization of ports and port infrastructures in order to finance the implementation of the Master Plans of other ports in its portfolio.

In more detail, the basic interventions of the bill include the following:
• “PPC model” in 8 public enterprises of the Superfund. It concerns the following companies:
 Hellenic Post Office (and their 100% subsidiary: ELTA Courier).
 TEF-Helexpo.
 Organization of Central Markets and Fisheries (OKAA).
 Central Market of Thessaloniki (KATH).
 GAIAOSE.
 Hellenic Salts.
 Corinth Canal Company Anonyme (AEDIK).
 OASA Athens Transport Group (OASA and its 100% subsidiaries: Road Transport – OSY and Fixed Transport – STASY).

The bill provides, in more detail:

• The possibility of attracting executives from the private sector with a simple procedure, based on the decisions of the managing director of each company. To date, the process envisaged is time-consuming, highly bureaucratic and disincentive for anyone seriously interested in applying for an executive position in one of the Superfund’s subsidiaries. The term of office of executives (general managers and directors) is increased from 3 years to 4 years with the possibility of renewal once.

• The flexibility in the salaries of the executives of ELTA and the rest of the bodies outside the General Government, while, in the subsidiaries within the General Government (public transport and GAIAOSE) the salaries will be in accordance with the standard of the EFKA.

• More flexible recruitment procedures for their staff, with a limited but essential role of ASEP: checking the legality of the announcement within 10 days and participation of its member in the examination of objections during the recruitment process.

• More flexible procurement, always in line with EU law. The procurement regulation is submitted to EADISY, which will have the opportunity to express an opinion within 60 days as to its compatibility with European law.

• The establishment of independent disciplinary councils without the participation of trade unionists.

• New, modern governance model of the Superfund

The responsibilities of the body that until now was known as the Supervisory Board are limited, so that they correspond to a body of supervision of the Superfund and not of day-to-day administration. To emphasize the new role of this body, it is renamed the Corporate Governance Council (CGC). Acts of day-to-day administration, in which it no longer has a role then as a Supervisory Board/now SED, are the increase of the Superfund’s share capital, the recall of the members of the Boards of its direct subsidiaries and the publication of the company’s financial statements. With these changes, the Superfund’s Board of Directors becomes the body exclusively responsible for the management of the company, as is the case in all modern corporate forms.

In addition, the representation of the Greek State in the SED is now institutional and will be done by one of the Secretaries General of the Ministry of National Economy and Finance, one of the Deputy Governors of the Bank of Greece and the Director General of ODDIX. In this way, the institutions are represented, whose operation has the greatest relevance to the new role of the Superfund, especially after the absorption of the HFSF and TAIPED.

• Mergers through the absorption of TAIPED and THF in the Superfund

The mission of both TAIPED and TCS has been largely completed. After all, based on its constitutive law, the HFSF has a duration until December 31, 2025. The merger of TAIPED and Superfund will take place following decisions of general meetings of the merging companies that will be taken until December 31, 2024. By then a Ministerial Decision will have been issued for the absorption of the HFSF by the Superfund. It is noted that the merger of TAIPED and the Superfund does not affect the autonomous operation of the Project Maturation Unit, which will continue to operate under a mandated consultant with autonomy status, as is currently the case. A consultant of the Superfund will undertake the internal reorganization of structures and bodies after the merger.

• The new National Investment Fund is created

For the creation of the Fund, the Superfund will allocate 300 million euros, i.e. half of the amount it will collect from the re-transfer of the shares of EYDAP and EYATH to the State. An investment tool is thus created, similar to those operating in most European Union countries, which will provide incentives for development initiatives, especially in sectors that are not sufficiently covered by current investors but have added value for the economy.

Its main features are specified in the proposed draft law:

• will implement investments in Greece, in dynamic sectors of the economy, where there is an investment gap, without competing with existing funds,
• will draw up a three-year business plan, which will be approved by the general meeting of the Superfund,
• will be able to participate as a co-investor with other funds and institutions mainly with minority participations in investments or with hybrid instruments,
• its investment capital that will be disinvested, will be reinvested in accordance with the Investment Policy, in a way that will not affect the national accounts,
• the selection of its administrative team will be made by the Superfund based on the criteria of scientific training-proven high expertise and many years of experience in matters of finance, investments, financing of large projects, etc.,
• the Superfund has hired an international consulting firm that will recommend the most appropriate corporate structure and organization of the new Investment Fund.

The proposal will be submitted for approval by the Ministry of Finance.

It is noted that the Fund’s investment activities include projects in Greece or of a cross-border nature and businesses that promote the Greek economy with development prospects, strong competitive advantages, efficient management teams and outward-looking activity, indicatively in the following sectors:

• in cutting-edge sectors of the Greek economy with strategic priority, such as green transition, circular economy, blue economy and technological and digital transformation investments, as well as strategic and critical mineral raw materials,
• in energy investments and in the corresponding infrastructures and networks,
• in transport and related infrastructure sectors,
• in technology industries and investments in blockchain and artificial intelligence technologies, and
• in development and technological infrastructures.

Finally, with an additional provision in the bill, it is provided that 50% of the revenue collected from contracts for the utilization of ports and port infrastructure will be directed to the servicing of the Public Debt, while the remaining 50% can be allocated to the implementation of the projects included in the Master Plan of of each Port Organization and are part of the Fund’s operational program. This development was the result of an agreement with the lenders, highlighting the transition to a new era of the country’s relationship with its lenders as well as the change in the image of the Superfund.