Greek officials step in to ease postponements of Hellinikon development project

Greek officials have stepped in to try and ease a standoff on a key bailout-related land development project by diluting demands for much of the plot at the former Athens international airport to be listed as an archaeological site.

A council of senior Culture Ministry archaeologists said late Tuesday that only about 4.5 percent of the 620-hectare (1,500-acre) coastal area at Hellenikon should be listed, as ancient cemeteries and a prehistoric settlement have been found in the area.

The Hellinikon property was sold under the country's creditor-mandated privatisation program to Greece's Lamda Development, which is planning an 8-billion-euro ($9.4-billion) development. The project will include a large park, housing, shopping areas and hotels.

Declaring the area an archaeological site would not fully preclude development, but could increase development costs. Tuesday's ruling requires government ratification.

Hellinikon Global, the investing company, said the whole plan is at risk of being called off completely if the government fails to step up approval procedures including a Piraeus Forestry Department finding that a section of the said property is a declared forest area.

A legal dispute committee was scheduled to convene on Tuesday over Hellinikon’s objection to the Piraeus Forestry Department’s claim. In response to the delays, government insiders said they are allowing state institutions and relevant bodies the time and space to ensure that the law is being adhered to.