[box] Four groups declared today their (non-binding) intent to buy 51% of the EYATh share. Suez cooperating with local mega-contractor Bobolas was no surprise to anyone, as was Veolia’s backing off; the latter seems to have decided to withdraw from Europe if such can be discerned from the selling of its Portugal business to a Chinese company[/box]

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Report by enet

The four competitors are: French Suez Environment with ELLAKTOR (controlled by Bobolas and Kalitsantsis), GEK-TERNA with local businessman G. Apostolopoulos (owner of Athens Medical) and the Israeli Mekorot, the Greek-Russian businessman Ivan Savvides and Movement 136, a citizens’ initiative.

In detail:

French Suez Environment in joint venture with ELLAKTOR (controlled by local contractors Bobolas and Kalitsantsis) was no surprise to anyone. Suez already owns 5% of the EYATh shares; Suez also took part in the abortive 2009 public tender when a minority part of such shares were to be sold.

GEK-TERNA (a greek public works contractor) and local health services businessman G. Apostolopoulos in joint venture with the Israeli Mekorot, as, according to the tender’s terms, competitors must prove at least a 5 year long experience in water and hygiene issues in cities with at least 500.000 inhabitants (which the former two obviously don’t have. Same of course is valid for ELLAKTOR above).

Ivan Savvides hasn’t yet found a water services company to enter the tender with and therefore has asked for a two month postponement.

Movement 136 is a local citizens’ initiative against the privatization of water services. They claim that water services shall be run by their users organized in cooperatives. Their name stems from their claim that if all users of the EYATh water services acted together the cost for acquiring the shares would be € 136 per household.

Veolia and Aqualia who have taken part in the 2009 public did not express any intention to compete in this public tender.

According to the public tender terms, the first part of the procedure will deal with the ability of the competitors to cover technical and financial issues. Legal issues will also be examined. Those found competent will proceed to the next phase: they will be permitted access to the ledgers and minutes of EYATh and then they will submit their bids.

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[box] In an impressive strategy move, Movement 136 from Thessaloniki, finds the funds needed to participate in the tender for the sale of EYATH. Despite the doubts in theory as for example the fact that since the company is public we are already all  “shareholders” , so basically we re-buy something that belongs to us already, and despite other reservations regarding the “noble intentions” of the funders, from a realistic prospect, this move  is an answer in “market” terms  so that the water company of Thessaloniki does not pass easily into the hands of Suez and Aktor. It’s probably a checkmate move in a condition where the unconstitutionality and the legal struggles but also the democratic consensus of citizens is  “postponed” for the future, and where the state of emergency has become nothing less than permanent. Hopefully the referendum announced by the municipality of Thessaloniki will be also decisive  for not privatizing the company eventually, though unfortunately it is not legally binding for the government.[/box]

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Republication from enet

Microsoft tycoon Bill Gates has come out in support of an initiative taken by Thessaloniki citizens to acquire a 51% stake in the city’s public water company Eyath, which the government is seeking to privatise.

The Bill and Melinda Gates Foundation, whose primary aim is to enhance world healthcare, is among 22 international organisations supporting the citizens’ movement, known as Initiative 136.

The government last February announced a public tender to sell the controlling stake in Thessaloniki Water Supply & Sewerage (Eyath).

Initiative 136 is among four investment groups that have expressed interest in the international tender for the purchase of a 51% stake in the company.

The citizens’ initiative opposes the privatisation of the company and proposes its social management through local-level cooperatives.

The name of the initiative comes from dividing the estimated value of Eyath by the number of users, which produces the symbolic number of €136.

According to the initiative’s manifesto, the government’s privatisation plan for Eyath “is another case of implementation of the model ‘privatisation of the profits, socialisation of the loss'”.

“Water is the ultimate commodity that nature offers us and the United Nations has recognised that the access to clean water and sanitation is a human right,” Initiative 136 says.

They stress that Eyath is an efficient and profitable company that offers quality water services in low prices, without ever reporting any financial loss. The company’s profits during the last 5 years were €75m, while the price of the takeover after the collapse of its stock market value is not more than €55m.

The following organisations have said they will offer financial support to Initiative 136: Accion International and Accion USA, Amalgamated Bank of New York (Amalgamated Ladies Garment Workers Union), Banca Etica, Bill and Melinda Gates Foundation, Blue Orchard Finance, Calvert Foundation, Charity Bank, Citizens Energy Company, Credit Cooperatif, Cultura Sparebank, Ecology Building Society, Epiphany Funds, FINCA International, GLS Gemeinschaftsbank, Merkur Cooperative Bank, Oikocredit USA, Shared Interest, Social Fisnance USA, Symbiotics, Cooperative Banking Group, Unity Trust Bank, Working Capital for Community Needs (WCCN).

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