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May 22, 2014

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BUSTED - EU Freezes 2.2 Bln In Funds For Waste Management - Are Greek Elites Pleased?

A revealing report that was released by the Eleftherotypia newspaper claims that public-private landfill contracts are too shady and contain numerous violations of EU competition rules and environmental waste laws. More precisely, the European Union froze some 2.2 billion Euros in funding for major waste management projects in eleven of Greece's 13 regions for the next three years because of serious violations of competition on waste disposal.

As stated in Eleftherotypia on Wednesday and Thursday, the decision affects 14 public-private partnerships (PPSs), including controversial waste management projects at Keratea, Grammatiko, Fyli and Ano Liosia in Attica.

The projects involve central government (the ministries of development, environment and the interior), regional governors (many of whom are running for re-election on Sunday) and some of the country's biggest contracting firms.

As a result of a request from the European Parliament's Committee on Petitions, competition authorities Brussels have signalled they intend to begin a preliminary investigation into allegations that the PPS contracts signed for the waste management facilities contain violations of competition rules and environmental waste laws.

That investigation, Eleftherotypia wrote, could result in the cancellation and renegotiation of existing contracts, which would put the waste-management projects back years.

Eleftherotypia's report said the contracts contained carbon-copy clauses guaranteeing to pay contractors for fixed volumes of waste at the planned disposal sites for the entire duration of the partnerships, which run for 28-30 years.

In other words, contractors will be paid to deliver a certain amount of waste every year, whether that amount of waste was generated or not. This leaves no incentive to reduce the volume of waste sent to landfill.

Under the EU's waste framework directive (2008/98/EC, all EU member states were required to adopt waste prevention plans no later than 12 December 2013. But Greece has not yet completed its draft of proposals on how to prevent waste.

The contracts are also believed to contain other violations of the directive on environmental impact studies (85/337/EC).

Among the private interests involved in the waste-management PPPs are Aktor/Ellaktor (Leonidas Bobalis), Terna Energy (George Peristeris), Intrakat (Sokratis Kokkalis), J&P Avax (Joannou & Paraskevaidis) and Mesogeos (Laskaridis and Latsis).

Greece buries 80% of its rubbish - over twice the EU average.

In 2005, the European Commission took Greece to court to force the closure of 1,100 illegal landfills. Seventy are believed to remain and the commission has now launched a second case against the government, threatening a daily fine of 71,000 Euros until they are eradicated.

The revelations led SYRIZA's contenders for the post of regional governor in Attica and Peloponnese, Rena Dourou and Odysseus Voudouris (respectively), to attack incumbents Yiannis Sgouros and Petros Tatoulis.

Parallel to this the development ministry, and the Attica and Peloponnese regions, denied that there was any problem with funding.

Following the revelation of this shocking new scandal, the Ministry of Development and the Regional Governor offices of Attica and the Peloponnese rushed to justify the unjustifiable.

With almost identical statements they attempted to maintain that there is no funding problem, but they were stopped short in their tracks since Eleftherotypia released even more startling details.

Taking full advantage of the situation, SYRIZA - supported regional governor candidates Rena Dourou and Odysseas Voudouris immediately launched scathing attacks on the incumbents and their rivals ahead of this Sunday’s runoff election.

(Source - Eleftherotypia)


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