ATHENS, Sept 12 (Reuters) – Greece has finalized a €3.3 billion ($3.64 billion) agreement for the lease of a toll highway in Athens with GEK Terna (HRMr.AT), according to two sources familiar with the matter. The deal is a crucial step for Greece to achieve its fiscal target of €5.8 billion in revenue from privatizations and bank stake sales this year.
One source indicated that the agreement was signed earlier on Thursday, with the goal of securing the funds by the year’s end. GEK Terna was selected last year as the preferred bidder for a 25-year concession to manage the 70-kilometer (44-mile) Attica Motorway.
The contract stipulates that the state will receive 7.5% of annual gross revenue from tolls. The Attica Motorway, one of Greece’s most heavily trafficked roadways, generates hundreds of millions of euros in revenue each year.
Proceeds from asset sales like this are instrumental for Greece in reducing its public debt, which remains the highest in the eurozone.