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Hellenic Republic Ministry of National Defence

Answer by MOD Panos Kammenos to a question posed by Mp Athanasios Davakis concerning the income from the exploitation of the Armed Forces assets

 “Mr. Davakis thank you for your question.

I have made available to you some documents, I will repeat myself. Allow me to say that after voting for the bill what we did was to establish a competent service. A week ago the service was staffed, according to the Government Gazette of the newly issued ministerial decisions. The service is now ready.    

Our second task was to create an electronic platform, the ebid, which needs to be certified based on EU standards. So now we are ready to commence with the bidding.

When we talk about the exploitation of the Armed Forces assets we mean 34 billion Euro net value, because there are also some donations and more, which need to be legally processed. We have included in the Act what you actually voted for, a minimum of 5% of assets efficiency, to the benefit of the Armed Forces, the funds and the personnel. So you may realize that this digit amounts to 1.5 billion Euro.

Why are we talking about 300 million to start with? Because the Act provides for two procedures: One is the ebid procedure, to begin in the next two weeks. The second one is to protect the assets, for example in case the Local Administration asks for one of the assets of the funds as a kind of favour, a present to a mayor so that he votes for, or to a union, to a prefecture or municipality.

So, allow me to inform you that as far as municipalities, Organisations of Local Authorities and Legal Entities of Public Law  are concerned we are ready to sign with the municipalities of Syros, Syntiki Serron, Preveza, Mesologgi, Larisa, Kavala, Faistos, Lesvos, Arta, Ioannina, Lamia, Karditsa, Chania, Heraclion, the Translation Department of the Ministry of Foreign Affairs, the Ministry of Transportation, The Ministry of Economy and Growth, Enterprise  Greece,  the Heraclion Region and the Chamber of Serres, in order to make available the assets with a 5% efficiency to the benefit of the Armed Forces.

We are talking about a great number of assets. I cannot disclose right now the exact number and the amounts of income. It will however be a great part of the expected income. Of course, I will stress once more that it will be to the benefit of the personnel, we will be able to build residencies for officers, NCOs, Professional Soldiers all over Greece.  

As far as big investments are concerned I am happy to inform you that we have already signed for one of them, concerning Fleves, an MOU with the first bidder. In order to have an ebid procedure, firstly we need to have a bidder. The first bid for Fleves is a 3.6 billion Euro investment to the benefit of the Hellenic Navy, the Fleet Fund, 100 million Euro annually, plus the contribution of the Fleet Fund to the profits.

Already the candidate investor has signed an MOU. We met in Abu Dhabi and next week we are hosting him in Athens. You members of the Opposition and the Government are welcome to join us in this meeting, because it would be important for him to know that the Opposition as well is supporting such investments.  More than 20.000 people will be employed, following an investment of 3.6 billion Euro. The Armed Forces Fund will benefit and the income will be significant for the State. This will happen next week.  

I believe that by May and having submitted the drafts, which should be included in the special developmental act already underway with the competent Ministries – of Tourism, Environment and Urban Planning -  we will have progressed with the bidding.   This bid will make us 100 million. The same will happen with Perdika,  always in coordination with the local population.

I would like to make mention at this point of Thessaloniki because Mr. Triantafyllidis has worked hard for this- the former “Pavlos Melas” camp. He initiated this issue and he asked for it to be given to the local community. The solution is that we will gain around 100 flats, in exchange of the 5%, which will be given to the Armed Forces, to be used as residencies by the Armed Forces members. Also two museums will be established, the Pontian Hellenism Museum which will host the permanent exhibition for the Pontian Genocide and a National Resistance Museum.

So far I am quite pleased with the progress achieved with the local authorities, because indeed the social contribution is great and we are making profit . Right now as markets indicate, - having witnessed what happens to most of the great investments – take for example Prasonisi, we should build a great resort, with a big harbour for cruises, and a big airport as well.

We will also cooperate with bureaus abroad, which will have their own investments proposals, and then all the related international procedures and biddings for big investments will follow. This is already underway. I believe that the objective will be achieved.  Thank you”.

“What can I do? You are provoking me to answer to you, Mr. colleague. Here’s my answer. During your stint as Minister you delivered 2.5 residencies to the Officers and NCOs. Last year we delivered 100 houses and this year we will deliver 414 ones, from the money will gain from the Armed Forces assets exploitation . During your stint you received from all funds together 1.5 million Euro. Only from Hotel Omonoia we will make more than that.

Mr. Davakis, please understand that the bids will commence with the MOU. In the least possible of all case 100 million Euro will be given.