Provision of Financial Advisory Services Tender, Greece - 25597145

Procurement Summary

Country : Greece

Summary : Provision of Financial Advisory Services

Deadline : 07 Sep 2018

Other Information

Notice Type : Tender

TOT Ref.No.: 25597145

Document Ref. No. :

Competition : ICB

Financier : European Commission

Purchaser Ownership : -

Tender Value : Refer Document

Purchaser's Detail

Purchaser : HELLENIC REPUBLIC ASSET DEVELOPMENT FUND S.A.
Athens, 1 Kolokotroni and Stadiou Str, 105 62 Phone: +30 210 3274400
Greece
Email :info@hraf.gr

Tender Details

Request for proposals are invited for Provision of Financial Advisory Services.

1. Introduction
“Hellenic Republic Asset Development Fund S.A.” (the “HRADF” or the “Fund”) is the legal entity entrusted with the implementation of the privatization program of the Hellenic Republic (the “HR”).

HRADF is established by and is operating under Law 3986/2011. Pursuant to article 188 par. 1 of Law 4389/2016, HRADF became a direct subsidiary of the “Hellenic Corporation of Assets and Participations S.A.” (the “HCAP”). In accordance with HRADF-s Asset Development Plan (the “ADP”), the Fund is seeking to appoint an advisor (the “Advisor”) with significant advisory experience with respect to its shareholding in the “Public Power Corporation S.A.” (the “PPC”). PPC is currently the biggest power producer and electricity supply company in Greece with approximately 7.3 million customers. PPC currently has in its ownership assets in lignite mines, power generation and distribution. PPC-s current power portfolio consists of conventional thermal and hydroelectric power plants, as well as RES units. Pursuant to decision nr. 249/08.04.2014 of Inter-ministerial Committee for Asset Restructuring and Privatisation (Government Gazette Bulletin B-, nr. 864/08.04.2014), the HR has transferred to HRADF, full ownership rights of 39.440.000 PPC shares corresponding to a percentage of approximately 17% of the total share capital of PPC.

According to the Decision 57/19.05.2017 of the Government-s Council for Economic Policy, on “The structural measures for PPC-s access to lignite” and in compliance with the decisions C (2008) 824 and C (2009) 6244 of the European Commission on PPC-s monopoly access to lignite, which became irreversible after the (2016) 733 and (2016) 748 decisions of the General Court of the European Union, Greece proposed to the Commission-s Directorate General for Competition (DG Comp.) PPC-s disinvestment of lignite power generating units to existing or new alternative suppliers or other investors. In this context, in January 2018, the Hellenic Republic proposed to the European Commission-s Directorate General for Competition as a binding structural measure the disinvestment of three (3) existing lignite units of PPC, namely Meliti 1 (330 MW installed capacity), Megalopolis 3 300 MW) and Megalopolis 4 (300 MW), as well as the production license for a new lignite unit (Meliti 2, 450 MW), together with the exploration and exploitation rights of the respective lignite mines (Megalopolis mine for the units Megalopoli 3 and 4 and the mines Kleidi, Meliti hills and Vevi for Meliti).

The Directorate-General for Competition conducted a market test for the aforementioned commitment of the Hellenic Republic. In addition, following the above, the Greek Parliament on 25/4/2018 voted the legislative provisions entitled «Structural measures for access to lignite and the further opening of the wholesale electricity market and other provisions» (Law 4533/2018 - Government Gazette Bulletin A-, nr. 75/27.04.2018), which define the process of the spin-off and contribution of two (2) lignite sectors of PPC SA in two (2) new companies (one in Meliti and one in Megalopolis), the framework of the international tender procedure for the sale of the shares that PPC SA will take over, the responsibility of PPC SA for the two (2) new companies and, the employment relations of the employees in the two (2) new companies. On 26.06.2018 the Extraordinary General Assembly of PPC approved the above spin-off and the tender process for the divestment of the two (2) new companies is underway (the “Divestment”).

Against this background, HRADF is seeking to appoint a financial advisor (the “Advisor”) with significant experience in providing financial advisory services and/or delivering valuations in connection with transactions in the energy and power sector to assist and advise the Fund in its role as PPC-s 17%
shareholder.
The assignment will be awarded in accordance with the provisions of law 3986/2011 and paragraph 2.3
of the Procurement Regulation of HRADF (Greek Government Gazette, Bulletin B-, nr. 476/26.02.2014),
as in force.
2. Scope of Work
The Advisor is expected to provide, inter alia, the following services to HRADF:
• Review all information and documentation made available to PPC-s shareholders in connection
with the Divestment;
• Provide written recommendations to the Fund-s BoD as regards the appropriate course of action
in its capacity as PPC-s 17% shareholder, ahead of the approval of the Divestment by PPC-s General
Assembly of Shareholders, in cooperation also, where deemed appropriate, with the Fund-s legal
advisor on the Divestment.
3. Duration and Budget
Duration of the Engagement: The duration of the engagement shall be three (3) months or up to PPC-s
General Assembly of Shareholders approving the Divestment, whichever occurs first; commencing from
the HRADF-s written notice to the Advisor requesting to commence the provision of services.
Maximum Budget: The maximum available budget for the award of the services is EUR 190, 000 (plus
VAT, including all out of pocket expenses.
4. Qualification Criteria
Interested parties should be able to demonstrate their standing and professional experience in relation
to the assignment tendered. In particular, the tenderers should be able to demonstrate:
4.1. Track Record & Experience: Proof of expert advisory services experience in valuations/
transactions in the energy and in particular power sector (preferably within the EU). Experience in
the Greek market will be highly appreciated. The Dossier should include obligatorily a catalogue
of all the relevant projects in which the interested party has participated in the last ten (10) years
(Dossier A-).
4.2. Project Team: Proposed project team composition and its proposed structure, including the
designation of the project leader and of the senior members of the team. The Dossier should also
include the CVs and a list of any relevant project experience of all the members of the proposed
project team during the past ten (10) years (DOSSIER B-).
4.3. Methodological Approach: Present an understanding of the context of the Divestment and its
impact on PPC-s strategy along with a brief description of the proposed approach to the
assignment (DOSSIER C-).
4.4. Financial Offer: Proposed fees should be quoted, set at a fixed amount including all expenses
(DOSSIER D-).

Documents

 Tender Notice