EIRNS—Fresh water will soon finally reach the Greek island of Aegina, which provides an example of why the new Greek government wants to stop privatization of public utilities. The Attica Regional Authority approved a EU32.5 million project to build a water pipeline from the mainland to the island. Aegina, a relatively large island, is the closest island to Piraeus. Only 14 km away, with a relatively large population, the island is 45 minutes by normal ferry and therefore also serves as a suburb of Athens and a weekend resort. So far water is delivered by tankers, and needless to say it is undrinkable. The pipeline, to be laid at a depth of 95 meters, will be 14 km long and will supply up to 30,000 cubic meters of water per day. Many other islands have the same problem and the new government has made providing fresh water via pipelines or desalination, one of its major infrastructure tasks, an important reason why the new government is forbidding the privatization of water companies.
Another key infrastructure issue for the islands is electricity. Many of the islands, including larger ones such as Rhodes, use diesel-powered generators, which provide the most expensive form of electricity, and not the most reliable, as Rhodes experienced last summer when one of its generating sets broke down. The solution to this problem has been to build larger gas-powered stations on selected islands, connecting the surrounding islands with underwater cables. This is one reason why the new government does not want to privatize the power company. Such projects are not suitable for the quick, speculative profits demanded by the private sector.
The other issue is transportation. It takes more than 12 hours by fast ferry to travel from some islands to Piraeus, and therefore air travel has to be a daily option. The planned privatization of airports endangered that option, especially for medical emergencies, prompting the local government of Crete last year to refuse to allow privatization of its local airport. Providing reliable transportation is one reason why the new government is reviewing the plan to privatize 12 of the country’s airports in a proposed sale to the Frankfurt airport.
Dean Andromidas
