Volos port privatization back on track after appeal ruling

Under Decision S1258/2026, the Authority ruled that the Growthfund Board of Directors’ decision of 19 February 2025, which terminated the tender process, must be revoked. The ruling vindicates ThPA S.A., which had been declared the preferred investor at the conclusion of the bidding process. The Authority has also set a deadline of 31 August 2026 for Growthfund to comply with its decision.

The ruling brings renewed attention to one of Greece’s most controversial privatization processes in recent years. The tender for the sale of the majority stake in the Volos Port Authority concluded in 2023, when ThPA S.A. submitted the highest bid of EUR 51 million and was named the preferred investor. However, the transaction was never completed.

In February 2025, Growthfund unexpectedly decided to cancel the tender, citing public interest considerations and the substantial change in circumstances following the extensive damage caused by Storm Daniel and Storm Elias in the Thessaly region. The government argued that the new conditions required a reassessment of the port’s development strategy, given its enhanced importance for the region’s reconstruction efforts.

ThPA challenged the decision, arguing that the cancellation lacked sufficient legal and factual justification and violated the principles of transparency and equal treatment of bidders. The competent court initially referred the case to EAADHSY for a substantive review of the appeal.

In its latest ruling, EAADHSY accepted ThPA’s arguments and annulled Growthfund’s decision, paving the way for the tender process to be reconsidered. While the ruling does not automatically result in the completion of the transaction, it significantly alters the legal landscape of the case and increases pressure on Growthfund, which must now determine its next steps within the deadline established by the Authority.

In a statement to the investment community, ThPA S.A. welcomed the decision, emphasizing that it confirms the company’s position as the preferred investor and noting that Growthfund is required to comply with the Authority’s ruling by 31 August 2026.

The case is expected to become an important precedent for Greece’s public asset privatization framework, raising broader questions regarding the limits of a contracting authority’s ability to cancel a tender after a preferred bidder has been selected, as well as the principles of legal certainty, investor protection, and predictability in large-scale privatization transactions.