August 2012
Agenda
1. Reforms to spur investments and growth 2. Greeces competitive advantage 3. Growth sector opportunities 4. Invest in Greece Agencys service offering
According to OECDs Going for Growth report, Greece has made the biggest progress, of all OECD countries, on structural reforms since the start of the crisis, covering the 2007-11 period. Greece is taking concrete steps to reform its economy
Financial analysts expect several sectors to grow significantly in the next few years
Room for investment: 1-5 year horizon
Infrastructure
Toll roads & concessions Marine/port developments Existing & New airports
Property development
Airport development Tourism REIT& REIC formation & flotation Gaming sector / Casinos
Energy projects
Capacity replacement (generation) New business (RES) Transmission/Interconnection investments Natural gas
According to McKinsey & Co: within 10 years the creation of 520,000 new jobs and 49 billion in new Gross Value Added (55 bn in GDP terms) could be achieved with the implementation of a New National Growth Model.
Deals in 2011
Canadian Eldorado Gold agreed on December 2011 to acquire all of the shares of European Goldfields, which currently operates the Stratoni mine and is developing the Skouries and Olympias projects in Greece and the Certej project in Romania. Qatar Holding has already agreed on October 2011 to acquire 13 million shares of European Goldfields for C$130 mn. Qatar Holding has also entered into a call option agreement to acquire a further 9,373,390 shares at 13 C$ per share and as a strategic partner will provide 600 mn US$ as a loan facilities.
The Dutch group of Friesland - Campina has announced a new 10 million investment in food sector McArthurGlen opened its 20th European outlet store in Athens. It is an investment of 100 mn which offers 21,000 sq.m. GLA and creates 1,000 new jobs.
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Deals in 2011
Chinese Group of Companies FOSUN agreed to acquire approximately 13.4% stake in Greek Folli Follie Group. Cronwell Hotels and Resorts and Russian private investors acquired three Hotels in Chalkidiki and many other residences.
Czech investment group PPF and ICT Group, the vehicle of Russian investor Alexander Nesis, have bought minority stakes in Greece's fourthlargest lender Piraeus Bank.
Linnaeus Fund, based in the Netherlands, acquired significant stakes in Greek aquaculture companies.
Tenders by the Greek government for investments in geothermal energy, solar parks and marinas attracted foreign companies in 2011
Deals in 2012
Turkish Setur Servis Turistik AS, subsidiary of Ko Holding and Greek multinational Folli Follie SA won a concession to operate a marina on the Greek island of Mytilini for 40 years. Dutch Tethys Ocean BV, a fully-owned subsidiary of Linnaeus Capital Partners BV, raised its equity stake in Dias Aquaculture to more than 50 percent. Turkish Kartonsan, a subsidiary of the Turkish Group Pak Holdings has acquired MEL S.A. Macedonian Paper mills.
Belgian retailer company DELHAIZE announced that it will invest 100mn in 2012 in Greece through its AB Vassilopoulos subsidiary.
Boehringer Ingelheim has announced its intentions to invest 10 mn in 2012 to expand its units, in order to boost exports from Greece.
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Why Greece?: 1. Greece is strategically positioned as the gateway to the EU and SEE
Members of the Eurozone, NATO, EBRD, EIB, IMF, UN, OECD, WTO, WHO, Interpol, UNESCO and CERN Access to the strategic and high growth SEE markets with: - Over $1,000bn of GDP - Over 140 million people Strong business and cultural ties with the region Network of over 4,000 Greek companies present More than 3,000 Greek branches of banks covering over 20% of the banking market in SE Europe Greek companies in top 3 investors in every market
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which makes it ideal for selecting it as a regional hub for the EMEA area
Entry point for EU, SEE, ME, NA sales Regional headquarters Business operations
Africa Middle East
Europe
Service center
Greece can be the regional hub for strategic growth in SE Europe, Africa and the Middle East
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Greeces Score Global average 100 100 100 100 100 100 100 100 100 96.0 98.1 96.6 88.0 92.0 95.9 91.0 91.2 68.0
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Lower corporate tax rates: nominal corporate tax rate is reduced to 20% Simplification of the establishment of new companies: one-stop-shop business incorporation services already in place New investment incentives law: transparent, quick procedures subsidizing up to 55% of the budget of projects Fast Track Law: accelerating the licensing procedure for strategic investments
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Lifting of cabotage in marine cruises: liberalizes the cruise market and allows non-EU cruise ships to embark from Greek ports Legislation for the acquisition of Real Estate in Border Areas: easier for EU and non-EU citizens to acquire properties in border areas New Legislation for Integrated Tourism Resorts and Holiday Housing: introduces investments in integrated tourism resorts Public Private Partnerships: legislative environment that supports PPP projects
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New framework for RES: accelerating licensing procedures for RES projects New Law for the simplification of environmental licensing procedures: Law reduces the projects and activities that require environmental permits. New Law on pre-bankruptcy period: introduces an important tool for the pre-bankruptcy reorganization of a business, seriously enhancing the possibility of its rescue. New legislation for the liberalization of Road Freight Transport: new law removes all unnecessary restrictions on admission to the occupation of road haulage, including minimum fixed prices
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The amount of aid could reach up to 55%, depending on the region, the budget of the plan and the size of the company.
Qualifying expenses
-tangible assets (buildings, machinery, equipment) -intangible assets (quality assurance systems, software, ERPs, technology transfer mechanisms, patents etc) -Research and Development and Innovation projects and programs.
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The value of the investment exceeds 40 million Euro and, concurrently, the investment creates at least 120 new jobs
9 Renewable Energy projects have already been approved, with a total budget of 6,3 bn. 1 project in mining 143,1 mil
The value of the investment exceeds 15 million Euro for industrial investments within organized industrial areas or 3 million Euro for investments included in JESSICA initiative
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Asia
Greece
75
6,16
6,04
6,04
5,98
5,97
5,95
5,94
Denmark
Australia
South Korea
New Zealand
Singapore
Norway
Taiwan
Greece
USA
Japan
Israel
UK
Canada
Ireland
Russia
China
India
Finland
Spain
Italy
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Infrastructure projects
Privatization Program An ambitious privatization agenda The privatization and state asset management program will: Support growth Attract private investment and create jobs Provide impetus to critical sectors of the economy
that will reap significant revenue: 19 billion Euros in total until 2015
Source: Ministry of Finance
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Real Estate:
HRADF has announced an invitation to solicit Expressions of Interest for the exploitation of the Afantou Property (1,858,000 sqm) on Rhodes Island. The process is progressing. The tender for the development of Athens former airport, probably the largest urban land development in the world, attracted the interest of 9 group of companies from Qatar, USA, Israel, Cyprus, UK, France.
http://www.hradf.com
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A unique past, a country full of archaeological treasures. Spectacular landscapes with pristine beaches and iconic mountains (More than 6,000 islands and islets, 15,000 km of coastline)
Tourism represents 15.7% of National GDP and almost 18.4% of employment (2011)
Mild climate ideal for year-round tourism Healthy and tasteful gastronomy in the country that gave birth to symposiums and the Epicurean philosophers. Strong Tourism Infrastructure One of the safest countries in the Mediterranean region with a hospitable population. Always among top tourism destinations of the world
(Greek islands received first award in 2011 Cond Nast Traveler)
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Integrated Resorts
Athletic tourism
Conference Tourism
Eco tourism
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A new Law ( 3978/2011) makes it easier for non-EU citizens to acquire real estate properties in Greece and decreases the areas that are considered as boarder areas
New legislation (4002/2011) introduces investments in integrated tourist resorts, which include tourist residences that could be sold or leased at a percentage of 30-60% of the total built area, depending on the building coefficient used
If the Greek residential market managed to attract foreign demand analogous to of the cumulative investment in Spanish real estate assets during the 2004-2008 period -- a figure in line with the relative size of the two economies -- It would result in FDI of c. 15 bn, and boost gross fixed capital formation by almost 6.0 per cent of GDP cumulatively, which, if spread out over 5 years, suggests about an additional of a percentage point to annual growth Source: National Bank of Greece
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Open tender for the concession of Piraeus Ports landmark Attica, Piraeus
Project description: Piraeus Port Authority (PPA) has announced an open tender for the concession of the exhibition center (Pagoda) in Piraeus port. The concession aims at the transformation of the 4- floor exhibition center into a luxury hotel. Specifically the project entails the design, construction, development, operation and exploitation of a modern five-star hotel complex for a period of thirty years that could be extended under certain conditions for five more years. Project owner: Piraeus Port Authority Mode of cooperation: Sale Key points It will be the first 5star hotel in Piraeus. Piraeus is the largest port of Greece with more than 20mn passengers per year. A recent deal with Cosco opens new business horizons for the whole region. The building is located on the port of Piraeus and it will serve passengers travelling from and to Piraeus. It is located close to the new Exhibition and Convention Centre, adjacent to the new monorail that will serve the port and next to St. Nicholas Squares underground car park station with 770 parking places.
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The strengths of the Greek RES market create a very attractive business opportunity
Bound by EU regulations and Kyoto Protocol agreements National target for RES at 20% on final energy consumption by 2020, 2% above the mandatory levels of 2009/28/EC, 40% electricity production from RES Increased domestic demand for electrical energy, to surpass 80,000 GWh in 2020. Installed capacity from 15GW to 27GW. High feed-in tariffs through 20 year PPA (power purchase agreement) Ideal conditions for wind and solar energy Decrease of RES production cost, attractive investment incentives 20 Billions Euros
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In 2020 1 MW out of 3 MW should come from RES The infrastructure cost to meet targets represents 1/3 of the penalty to be paid by Greeks in case the targets are not met
Participation of RES & Conventional Technology in Electricity Generation for the year 2020 PV 1,44% Geothermal 0,24% Hydro 6,08% Biomass Biogas 0.53%
6.000 5.000 4.000 3.000 2.000 1.000 0 Hydro Geothermal PV Concetrated Solar Target 2020 Wind Biomass 0 120 625 0 250 4.650 3.237 2.200 1.640 44 350
Wind 24,09%
Conventional 66,90%
Capacity 2011
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The Renewable Energy Sources sector in Greece has various opportunities to offer
Wind
Light manufacturing
Geothermal
Biofuels
Hydro
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Capacity (MW)
272 250 241 172 127 60,5 59,8 58 44 42 36 27,5 26,8 25 22 22 19,8 16 15 12 10 10 10 47,4 1626,5
Capacity (MW)
798 350 196 155 78 48,3
Market Share
49% 22% 12% 10% 5% 3%
Products
Location
Employees
70
Solar Thermal
60 50 50 38 24
Another PV manufacturing unit will be developed at Kozani to cover the demand of the 200 MW PV park which will be built at the area.
Source: HELAPCO
7,5
PV
Source: RAE & YPEKA
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Total capacity (MW) Total capacity (MW) Total capacity (MW) Wind Biomass Geothermal Small Hydro PV Solar Thermal Hybrid Total Capacity (MW) 1640,46 44,53 0 205,6 625,57 0 0 2516,71 1324,67 27,80 0 60,7 428,6 0 0,1 1841,9 20569,42 410,39 8 961,9 3290,9 394,3 536,2 26171,2
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Electricity Production from: Onshore Wind Farms > 50kW Wind Energy 50kW Hydro < 15MW PV 10KW on rooftops Solar Thermal Solar Thermal with storage system which ensures 2 operational hours. Geothermal energy of low enthalpy Geothermal energy of high enthalpy
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Electricity Production from: Biomass 1MW 1MW < Biomass 5MW Biomass > 5MW Biogas 2 MW Biogas > 2 MW Biogas out of biomass 3MW Biogas out of biomass >3MW Co-generation
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PV Feed-in Tariffs
Tariffs (/Wh) Year Month Interconnected System >100 KW 2012 2012 2013 2013 2014 2014 2015 2015 February August February August February August February August Year n from 2015 onwards SMC = System Marginal Cost : 1.3*SMCn-1 Year n from 2015 onwards SMC = System Marginal Cost : 1.4*SMCn-1 Year n from 2015 onwards SMC = System Marginal Cost : 1.4*SMCn-1 292.08 271.64 252.62 234.94 218.49 203.20 <=100KW 328.60 305.60 284.20 264.31 245.81 228.60 Non interconnected Islands 328.60 305.60 284.20 264.31 245.81 228.60 PVs on Rooftops 495 470.25 446.73 424.40 403.18 383.02 363.87 345.68 (follows 5% reduction per 6 months till the year 2019)
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Sinovel set to finalise 300MW deal A memorandum was signed with Greece's Public Power Corporation regarding Sinovels participation in a wind farm at Rhodope in northeastern Greece, with a capacity of 300MW and a budget of 220-250 m NUR-MOH heliothermal on Crete: 38MW electricity generation license for a solar power plant The developer Nur-MOH is a joint venture between Nur Energie, an independent power producer and developer active in the Mediterranean region, and Motor Oil Hellas (MOH), one of the largest corporations in Greece listed on the Athens Exchange. The subidiary company entered into an agreement with the Municipality of Lefki, Crete, for a 20-year lease over 100 hectares of municipal land in order to build, own, and operate a CSP plant
Abengoa The Spanish multinational corporation got its electricity generation license in April 2011, for the construction and operation of a 25MW CPS plant, on Crete
Phoenix Solar builds 1.1MW Greek solar plant Photovoltaic system integrator Phoenix Solar announced in October 2011, a 1.1MW solar power plant in Kolindros in Central Macedonia. Frankfurt-listed Phoenix Solar is in charge of the design and construction of the solar park, as well as for the delivery of modules, inverters and components. Construction work began in September and has already been completed
Conergy: PV parks under construction Conergy is currently constructing a 1.5MW photovoltaic park in Arta and a 2MW photovoltaic park in Greneva, located in the northern parts of Greece
PPC: The first phase of the Invitation for Expression of Interest for the selection of a long-term strategic partner for the construction and operation of a photovoltaic park with a total capacity of 200MW in the area of Kozani was completed. Amongst the 15 companies that will be invited to participate in the 2nd phase (submission of offers) are significant groups from: USA, Germany, China, Japan, Spain, Italy and Norway
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Software development
Drug development
Iraklio
49
2005
2006
2007
2008
2009
Source: Source: Federation of Greek ICT Enterprises; Digital Planet, Global Insight 2010
-05
160
-06
225
-06
297
-06
370
-06
488
-07
623
-07
761
-07
904
-07
1.017
-08
1.125
-08
1.246
-08
1.311
-08
-09
-09
-09
-09
-10
-10
-10
-10
-11
Advantage 1:
Advantage 2:
Geographic location
Advantage 3:
Strong market
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Key Figures
F&B enterprises represent 23% of total manufacturing enterprises 893 are industrial companies with prominent domestic and international presence. The rest are SMEs Sales account for 9.74 billion Euro covering 26.2% of total manufacturing Employs 91.847 people covering 22,9% of total employment in manufacturing
14.490
15.195
2004
2005
2006
2007
2008
2009
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Rehabilitation of the existing landfills Environmental sound management of industrial, medical and hazardous waste Construction of suitable transfer station networks and recycling centres Selective collection at source and further recycling of municipal waste Water treatment and sea or brackish water desalination Wastewater and sewage treatment
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Region of Western Macedonia: New infrastructure for the integrated waste management system
Geographical Area covered by the project
A PPP projects that involves the design, construction, financing, maintenance, facility management and operation of new infrastructure, aiming at covering the waste management requirements imposed by the EU Directives
The selected SPV will undertake: 1. The design, construction, maintenance and operation of the central integrated waste management installations which will be composed by a treatment and exploitation unit and a residues sanitary landfill 2. The maintenance and operation of the existing network of waste transfer stations, when the treatment unit begins its operation. The network consists of ten transfer stations and their mobile equipment
KEY PROJECT DATA: Contracting Authority Project Owner: Waste Management System of Western Macedonia (DIADYMA S.A.) Project Capacity: 120,000 tons per year, reaching 152,000 tons by the end of the partnership Mode of Cooperation: Public Private Partnership Technology Used: The unit will be constructed upon any proven technology that can meet the targets set by the EU Directives and the output specification set by the Contracting Authority Budget: 97 million EURO +20% insurance and heavy maintenance costs Duration of Contract: 27 years Reimbursement: The project will be reimbursed by the end users and the Greek state
Region of Western Macedonia: New infrastructure for the integrated waste management system (2)
The project is part of the strategic plan of the Region of Western Macedonia. Its implementation ensures that:
The companies that have passed in the 2nd phase of the tender, which includes the submittal of bits are: 1. Waste Syclo 2. Mesogeios-J&P AvaxPolyeco 3. Novaera Hellas 4. Terna Energy 5. Athoniki Techniki Adamidis 6. Helector -Helesi
1.
the amount of waste to landfill is decreased and the life cycle of the existing landfill is doubled
2. 3.
the environmental impact of treating biodegradable waste is minimised commercially exploitable products are produced. The selected SPV will be given the right to commercially exploit the output of the treatment unit, such as recyclable products, biogas, RDF, SRF, etc.
4.
the efficiency of the investment made during the 2002-2004 period is maximised
Restoration works in the region of Western Macedonia Source: Special Secretariat for Public Private Partnerships, DIADYMA S.A.
Prefecture of Peloponnese:
Development of an integrated waste management system through PPP
A PPP projects that involves the design, construction, financing, maintenance, facility management and operation of the new infrastructure of the integrated waste management system in the Prefecture of Peloponnese, through a Public Private Partnership. The tender will be concluded in two phases . The first phase will be the Expression of Interest and 6 participants will participate in the second
Geographical Area covered by the project
phase. The second phase will include an open dialogue and the Final Offers made by the bidders.
KEY PROJECT DATA: Contracting Authority Project Owner: Prefecture of Peloponnese. Project Capacity: 200,000 tons per year Mode of Cooperation: Public Private Partnership Technology Used: No specifications are given. Technology will be proposed by the bidder. Duration of Contract: 28+5 years
Current condition of a waste disposal field in Peloponnese
Prefecture of Serres:
Development of an Integrated Waste Management system
A PPP project that involves the design, financing, construction, maintenance and operation of the new infrastructure of the integrated waste management system in the Prefecture of Serres.
KEY PROJECT DATA: Contracting Authority Project Owner: Solid Waste Management Corporation in Serres - Limited Development Company (ESANS ) Project Capacity: 90.000 tons per year Mode of Cooperation: Concession Technology Used: The basic selection criterion of the preferred bidder will be the lowest fee which will be paid by the registered citizens, as well as achieving all the relevant environmental targets. All approved European technologies which satisfy the prerequisites set by the European Legislation will be accepted with full transparency and ensuring the public interest. Duration of Contract: 27 years Reimbursement: The project will be reimbursed by the end users and the Greek state
Prefecture of Attica:
Development of an Integrated Waste Management system
A PPP projects that involves the design, construction, financing, maintenance, facility management and operation of the new infrastructure of the integrated waste management system in the Prefecture of Attica
KEY PROJECT DATA: Contracting Authority Project Owner: Prefecture of Attica Project Capacity: 1,350,000 tons per year Mode of Cooperation: Concession Technology Used: The unit will be constructed upon any proven technology that can meet the targets set by the EU Directives and the output specification set by the Contracting Authority Budget: 430 million EURO Duration of Contract: 20-25 years Reimbursement: The project will be reimbursed by the end users and the Greek state
Prefecture of Thessaloniki:
Development of an integrated waste management system
Geographical Area covered by the project
A PPP projects that involves the design, construction, financing, maintenance, facility management and operation of the new infrastructure of the integrated waste management system in the Prefecture of Thessaloniki
The selected SPV will undertake: The design, construction, maintenance and operation of a plant that will treat solid waste of the Northwestern unit of the Prefecture of Thessaloniki and will be composed of a treatment and exploitation unit and a sanitary landfill. KEY PROJECT DATA: Contracting Authority Project Owner: Association of Local Authorities of Greater Thessaloniki Project Capacity: 400,000 tons per year Mode of Cooperation: Public Private Partnership Technology Used: The unit will be constructed upon any proven technology that can meet the targets set by the EU Directives and the output specification set by the Contracting Authority Budget: 242 million EURO +20% insurance and heavy maintenance costs Duration of Contract: 29 years Reimbursement: The project will be reimbursed by the end users and the Greek state
Source: Special Secretariat for Public Private Partnerships, Association of Local Authorities of Greater Thessaloniki
Prefecture of Thessaloniki:
Development of an integrated waste management system (2)
The project is part of the strategic plan of the Association of Local Authorities of Greater Thessaloniki given that waste production in the Prefecture is significant. The implementation of the project ensures: 1. 2. 3. the decrease of the amount of waste that is sent to landfill the final cease of operations in the landfill of Tagarades the commercial exploitation of the plants output. The selected SPV will be given the right to commercially exploit the output of the treatment unit, such as recyclable products, biogas, RDF, energy, etc.
Landfill of Tagarades Source: Special Secretariat for Public Private Partnerships, Association of Local Authorities of Greater Thessaloniki
Employment
SalesGDP
The Greek mining/metallurgical industry constitutes an important sector of the economic activity of the country. It constitutes approximately 4% of the GDP, with the inclusion of interrelated enterprises such as quarrying, processing and production of intermediate and final products. It supplies essential raw materials for industries such as cement, production of energy, non-ferrous metals (aluminum, nickel, etc). Estimated sales of the countrys mineral industry and basic metallurgies, total almost EUR 2.1 billion
Exports
Greek mining industry has strong outward-looking features, since exports account for more than 70% of sales, and for some minerals Greece holds a leading position in the global market. Greek mining companies are well organized and hold significant market shares worldwide in products such as bauxite, alumina, aluminum, nickel, caustic calcined magnesia, dead burned magnesia, raw magnesite, pumice, silica and ornamental stones (principally marble).
Available reserves
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Canadian Eldorado Gold Corporation has acquired all of the issued and outstanding common shares of European Goldfields Ltd and its multi-stage assets located in Greece. The total transaction value was approximately C$2.5 billion.
Paul Wright Eldorado Golds President and CEO called Sunday's deal a "vote of confidence" for the struggling eurozone country. The northeast of Greece is very, very prospective. We obviously take the view that Greece will work its way through the present difficulties."
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Kallintiri Alexandroupolis
Sappes project Au, Ag, 0.8 bn total value Perama project Au, Ag, 1.8 bn total value Olympias project Pb, Zn, Au, Ag, 6.4 bn total value Skouries project Cu, Au 8.6 bn total value Stratoni project Pb, Zn, Ag, 0.6 bn total value
Polikastro Skra
Chalkidiki
Privatisation of the 5th largest Nickel producing company in the world -LARCO
According to the Medium- Term Fiscal Strategy 55.2% of its shares that belong to the Hellenic Republic will be sold. The Ministry of Finance has already appointed HSBC Bank PLC and PriceWaterhouseCoopers Business Solutions financial advisors.
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1. Governmental Legal Entity 2. Incorporation and operation since 1996 3. Business Units: Investment Promotion Unit Investor Services Unit Strategic Investments Unit Policy and Planning Unit Finance and Administration Unit Communication and Public Relations Unit
Aftercare Support
FAST TRACK
Analysis
Facilitation
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World Banks reports gives the third position to Invest in Greece Agency
Invest in Greece Agency was ranked 3rd Investment Promotion Agency in the world, in terms of handling inquiries from investors, according to the Global Investment Promotion Best Practices Report 2012, published by the World Bank.
Invest in Greece Agency went from being among the OECDs weakest performers in 2009 to being among the worlds strongest in 2012. Most impressively, at a time of economic turmoil, when many IPIs would be discouraged, Invest in Greece Agency tried harder.
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Public Projects
Promotion of mature public projects, in sectors where the country has competitive advantages. Cooperation with the relevant Ministries and the local authorities for finding projects which can attract private investments.
Private Projects
Development of a portfolio of mature private projects in many sectors of the economy More than 150 mature privately owned projects in our projects portfolio. Customized promotion to foreign Investors
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