Greek Govt. Grants Crete Project Fast Track Status
21 September 2012
MINOAN GROUP PLC
("Minoan")
GREEK GOVERNMENT GRANTS CRETE PROJECT FAST TRACK STATUS
Fast Track is designed to facilitate strategic investment projects and accelerate their approval
Minoan Group Plc, the AIM listed travel and leisure company, is pleased to announce that its Crete Project ("the Project") has been granted Fast Track status by the Greek Government.
The decision was taken by Greece's Interministerial Committee for Strategic Investments, which is responsible for approving projects for Fast Track, after Invest in Greece S.A. ("IIG"), the country's official investment promotion agency, had evaluated and approved the application.
The Fast Track process is part of the significant changes to Greece's investment laws designed to facilitate strategic investment projects. IIG will coordinate the overall planning procedure.
Christopher Egleton, Chairman of Minoan, commented:
"We are delighted that the Greek Government has granted our Crete Project Fast Track status. It is definitely the most significant step yet in terms of bringing the Project to fruition and demonstrates the Greek Government's support for what is now recognised as a strategic investment for the country, one which we believe will yield significant economic benefits including the creation of approximately 1,200 jobs.
We are particularly grateful to the Greek Government for its efficient handling of this process, which has allowed us to cooperate effectively in addressing any issues as they have arisen. The new investment legal framework is designed to attract necessary foreign direct investment, like the Project, to the country."
The Candia Investment Corporation which, as announced on 20 June 2012, is Minoan's financial joint venture partner in the Project investing £2 million for a 10% interest in the Project with the right to purchase a further 25% for £12.5 million, stated:
"Candia is delighted with the news of the Fast Track status and its significant impact on the Project. We look forward to a rapid conclusion of the planning process."
For further information see the notes to editors at the end of this announcement or visit www.minoangroup.com or contact:
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Minoan Group Plc |
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Christopher Egleton |
christopher.egleton@minoangroup.com |
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Bill Cole |
020 8253 4305 |
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WH Ireland Limited |
020 7220 1666 |
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Adrian Hadden/Nick Field |
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Throgmorton Street Capital |
020 7071 0808 |
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Forbes Cutler |
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Morgan Rossiter |
020 7629 9101 |
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Richard Morgan Evans/James Rossiter |
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Notes:
Crete Project
· The site for the Project is the Cavo Sidero peninsula, a spectacular location extending into the Mediterranean from the North Eastern coast of Crete in the prefecture of Lasithi.
· The proposed development has capacity for 1,936 beds in a number of very high-quality hotels, which will include a wide range of leisure, sports and cultural facilities.
· CBRE assessed the value of Minoan's interest in the development, with planning approval, at Euro 100 million in 2011, a value which was reaffirmed in 2012. When complete, the Project will offer a resort that will provide an extensive range of amenities for guests and the local community.
· The operation of the completed Project will create approximately 1,200 jobs in addition to some 500 jobs during the 5 year development phase.
· The Project will be a sustainable development (with a build footprint of significantly less than 1% of the 6,500 acre site) designed to reinforce and underpin the key elements of environmental and cultural heritage essential for the long term commercial prospects of the resort.
· The Project represents a significant scheme within Greece's foreign investment pipeline and as such has considerable political as well as economic importance.
· The decision to include the Project within Fast Track means that there is only one remaining step ahead of securing the full and final go-ahead for the Project, which is the approval of the updated Environmental Impact Assessment. The Board of Directors is confident that this approval will be received in due course.
Fast Track
· Greece introduced sweeping changes to its investment framework with a new Investment Development Law ("the Law") in 2010.
· The Law is designed to channel resources to foster healthy entrepreneurship and be a catalyst in the developmental promotion of the economy.
· Within the framework of its new investment laws, Greece introduced the Fast Track process to facilitate strategic investment projects and to accelerate their approval.
· Fast Track identifies strategic investments - those with positive multiplier effects - to boost economic growth, build a green economy, advance R&D, and create new, sustainable jobs.
· Fast Track focuses on the construction, reconstruction, or modernisation of projects in the energy, industrial, tourism, transportation, telecommunications, health, waste management, innovation and high tech sectors.
· Investments may be either Public, Private, or Public-Private Partnerships - one of the most successful models - to complete a wide variety of projects.
This information is provided by RNS
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