Earlier today, Samaras will meet with coalition partners Evangelos Venizelos (PASOK) and Fotis Kouvelis (Democratic Left) to finalise the new EUR 11.5 billion austerity package for 2013-2014, drawn up by Finance Minister Yannis Stournaras, in view of the Premier’s scheduled meeting with the troika tomorrow. Stournaras is due to meet the heads of the EC, ECB and IMF team in Greece this afternoon.

According to Kathimerini, it is expected that apart from cuts in spending in various government departments, the measures will also include considerable reductions to state pensions (saving around EUR 5 billion), which will be one of the most politically sensitive issues for the coalition to handle, given that the three parties had committed in their election campaigns to avoiding “horizontal” cuts. Sources said that an extra EUR 300 million would be cut from the healthcare budget.

“We have to ensure that the troika delivers a favorable review,” one of Samaras’s aides told Kathimerini. “There is no room for games.”

Meanwhile, according to an announcement by the ministry of Administrative Reform, 21 organizations are being merged under a pilot scheme as part of cuts in public spending. These institutions were financed with almost EUR 40 million per year, protothema.gr reported.

Initially the merged organizations will be those “that provide similar services” and it is estimated that “the merger will be able to provide the same services to citizens at lower cost for the state budget and greater efficiency, because the new organizations will be able to better exploit the available resources, streamline the use of real estate, limit boards and management positions etc.”

According to Reforms minister Antonis Manitakis, the staff of these organizations, totaling 5,256 employees, will not be laid off but will be transferred to other departments of the public sector based on staff evaluation. In all cases these services will continue to be provided either by the new organizations that will emerge, or by the supervising ministries.

According to the ministry the merged institutions were organized in 213 legal bodies throughout the country. There will be 9 groupings after the mergers, which will be organized in 34 legal bodies.

Meanwhile, Yannis Emiris, investment-banking chief at Alpha Bank was appointed to run the Privatisation Agency. Takis Athanasopoulos, a former chief executive at state-controlled power producer PPC an former chief operating officer at Toyota Europe was named as chairman.

According to official figures, Greece’s privatisation programme aims to raise EUR 19 billion by the end of 2015. It has so far collected just EUR 1.56 billion in cash since the first bailout agreement in 2010. More than 90% of the privatisation programme will come from the lease and concessions of state land and infrastructure.

Media reports quoting sources close to the Prime Minister as pointing out that Greece’s loan agreement with the European Union and the International Monetary Fund bind the next government to certain immediate obligations. According to Kathimerini, these include the overhaul of the tax system, the reform of the public procurement process and sweeping changes to the justice system. In total, there are some 70 requirements that have to be completed before the end of June, including the sale of Public Power Corporation lignite units.

Apart from that, any government is formed after the May 6 elections will have to agree with the EU and the IMF another 11.5 billion euros of savings for 2013 and 2014.The fact that reminders about these imminent commitments apparently came from the prime minister’s office was seen by some as an attempt by Papademos to intervene in the election campaign just days before the polls. Government sources however deny that any of the premier’s aides had made such comments.

They added that given the tense atmosphere ahead of Sunday’s vote, Papademos will simply repeat today the message he delivered last week, which is that Greece has to strive to remain in the Eurozone and the European Union. The Cabinet is also expected to approve the release to Greek banks of 18 billion euros’ worth of European Financial Stability Fund bonds that are currently held by the Hellenic Financial Stability Facility, according to Naftemporiki.gr.

According to protothema.gr, Papademos’ list of measures and structural changes includes: the privatisation of water and gas utilities, lignite energy units, highways and ports, layoffs of civil servants, sales of public enterprises, further reduction of salaries and pensions, further cuts in health benefits, elimination of tax exemptions, increase in objective real estate values and electricity bills.

The list also includes pending issues that ministers will deliver to their successors a few days after the elections.

In order to facilitate the achievement of its targets, as stated in Law 4016/2012, HRADF is developing with the assistance of specialist consultants, an integrated Program Management System (PMS); this is scheduled to go live by end of April 2012. So far all Advisors but six, for all 2012 and 2013 projects, have been now contracted; of the remaining, two are at the final stage of signing by the Ministry of Finance, while four more Advisors (concerning two projects, Trainose and ELVO) are in the tendering process.

During the first quarter of 2012, the following real estate assets have been transferred to the Fund by the Greek Government, to be prepared for privatisation: Afantou (Rhodes), Kassiopi (Corfu), the International Broadcasting Center (IBC) and three more buildings.

During Q1 2012, four projects have been launched: the tender for DEPA/DESFA (February 29th, 2012), in response to which interest was expressed by 17 investors, from 12 countries, the long lease for 90 years of the building of International Business Center (IBC), the leasehold for 99 years of a property in the Kassiopi area, the leasehold for 99 years of a property in the Afantou area.

HRADF initiated a strategic assessment of its banking portfolio in order to formulate realistic privatisation concepts for its assets. The Fund’s CEO has met with the European Investment Bank top management in order to present the complete privatisation programme and to discuss funding of the Motorway projects, currently stalled, as well as with the top management of DG Comp in Brussels, in order to provide an overview of the privatisation programme and develop a mutually acceptable approach to resolving state aid issues regarding assets for privatisation.

In the following Q2 2012 HRADF is planning to put on the market: a. the sale and repo of 28 state buildings, 35% of Hellenic Petroleum shares, 29% of OPAP shares, 74% of the shares of Thessaloniki Water Supply and Sewerage Company, the assets of LARCO, the nickel mining and smelting company, Egnatia Odos concession, 61% of the shares of Athens Water Supply and Sewerage Company, 90% of Hellenic Post shares and a number of small ports and marinas.

The covered area of IBC consists of the top market shopping Mall, The Golden Hall, with 73,000 m2 above the ground, 59,200 m2 parking space and in addition an up to now vacant area of 14,300 m2 above the ground and a basement of 7,300 m2.

According to HRADF, the candidates meeting the relevant criteria that are invited to submit binding financial offers are: Lamda Development SA: Holding company (listed on ASE) engaged in developing, investing and managing property in Greece and Southeastern Europe. Its portfolio includes properties in commerce, office use and residential; Talima Ventures Inc.: Company engaged in the real estate industry since 1950 mainly in Latin America. It owns the Athens Metro Mall in Daphne; REDS SA: Member of the Group ELLAKTOR, listed on ASE, is a real estate development company that focuses on developing Commercial Parks, Commercial & Leisure Centres, organized residential complexes, exhibition centers and office buildings. It operates in Greece and Romania.