AKTOR and MYTILINEOS disqualified from major PPP road project

Turbulence in the construction industry continues, this time for another major, ‘new-generation’ project. According to safe information of ypodomes.com, AEPP (i.e. Pre-litigation Appeals’ Authority) is excluding AKTOR and MYTILINEOS from the tender, following an appeal by INTRAKAT, which has been accepted.

According to the same sources, the two companies are out of the tender due to lack of experience of the project’s designer regarding electromechanical works. The decision was issued last Friday, causing concern in the Ministry.

A total of 5 consortia had initially participated in the tender at the stage of Expression of Interest. The fact that two out of 5 companies are out of the game is translated by market players as a weakening of the tender process itself as both AKTOR and MYTILINOS (along with the spanish company Acciona) have significant experience in large-scale projects.

The 3 companies that remain are TERNA, INTRAKAT and AVAX.

The two consortia are considered certain to file an objection, as they are entitled by the law, to the Council of State, against this decision in the hope that the CoS will overturn the decision and allow them to return to the tender.

It should be reminded that on January 23, the Ministry of Infrastructure and Transport had published its decision for the qualification of all 5 groups to the second stage.

The project

The estimated cost of the project is 312.23m euros (incl. VAT, VAT excl.:251.8m euros) and the Iimplementing entity is the Ministry of Infrastructure and Transport. It is a PPP project and the tender will proceed according to the provisions of L.4412/2016.

As it is already known, the contract awarding procedure comprises 2 phases:

Phase A: Expression of interest and

Phase B (including 2 stages):

– Competitive dialogue and

– Binding offers

The duration of the PPP contract will be 360 ​​months (i.e. 30 years) while there is no provision for funding from the European Union. The repayment of the project will be made through availability payments or other installments during the operation period.

Under the partnership agreement, the private partner is expected to undertake the following:

a) The preparation of all the studies required for the construction of the projec (on the basis of the studies provided by the contracting authority, the final design of the project, environmental permits, etc.),

b) Execution of the entirety of the required construction works,

c) Financing the project,

d) Maintenance and operation of the road section «Kalamata – Rizomilos – Pylos – Methoni», as provided for in the final design, for the duration of the PPP,

e) Return of the project to the Greek State, at the end of the contract period.