Recoverability of investment key in Russian Railway's interest in Greek asset - ministry
MOSCOW. May 17 (Interfax) - The recoverability of invested funds will be a key criterion for Russian Railways' (RZD) decision on whether to bid in the tender for the privatization of Greek railway company TrainOSE, the Russian Transport Ministry said.
"RZD has responded to the proposal and taken the first step in the form of a nonbinding offer. Now consultants are actively working on building a financial model, clarifying all of the terms of the deal, including taking into account decisions at the level of the European Union, so that the recoverability of investment is assured. If such a model is built, then the next step will be taken," Transport Minister Maxim Sokolov said in an interview with Rossiyskaya Gazeta.
Greece is selling two railway assets, TrainOSE and train maintenance company Rosco, the minister recalled. "True, both have a substantial total debt burden of more than $800 million, which objectively reduces the appeal of this asset," Sokolov said.
"And Russian Railways has always insisted on its interest not only in railway infrastructure, but also in another asset, the Thessaloniki port, tender procedures for which should begin in July," Sokolov said, adding that he has been to this port and reviewed its prospects for development.
"We believe that if railway and port infrastructure were to be offered for sale as an integrated logistics chain, its investment appeal would be higher," Sokolov said.
