The Mytilineos corporate group’s chief executive Evangelos Mytilineos has made a 110 million-euro offer to upgrade the main power utility PPC’s ageing Amynteo lignite-fired power plant in exchange for a favorable long-term electricity supply agreement. This initiative comes as one of three key moves promised but not disclosed by the CEO earlier this week.

The offer, a written statement, was forwarded to state-controlled PPC’s head official Manolis Panagiotakis, energy minister Giorgos Stathakis and the country’s new privatizations superfund director Ourania Ekaterinari.

The Amynteo facility has been excluded from a bailout-required sale package of PPC lignite units.

In the offer, Mytilineos highlights the key role played by PPC over the years in supporting the industrial sector, adding that the time has now come for industry to support PPC.

The industrialist’s offer requests the establishment of an electricity supply agreement with PPC, offering between 300 and 400 MW per year, until 2030, as well as the right to use 90 percent of this supply. Mytilineos left open the possibility of other industrial enterprises also taking part in the agreement.

Such an agreement would secure competitively priced electricity for energy-intensive Greek industries.

Mytilineos noted that such an agreement could be utilized to help the utility reach bailout-term objectives by factoring in the mid-voltage share (up to 20 percent) into PPC’s retail electricity market share contraction requirement.

As part of the agreement, METKA, a Mytilineos group subsidiary providing a complete range of Engineering-Procurement-Construction (EPC) services for energy and infrastructure projects, could take on the Amynteo upgrade project without delay, the group’s CEO noted in the offer.

Such a development would enable PPC to continue operating its ageing Amynteo plant, whose lifespan is currently limited, and save PPC capital for other needed investments. Also, an upgraded Amynteo facility would be eligible for CATs and offer job security for staff working at the facility.

Mytilineos has asked PPC to confirm whether the utility is interested or not in the proposal by February 28, so negotiations may begin.