Egnatia Motorway, aka a prospective “golden” concession contract

The concession tender for the country£s longest covered motorway, Egnatia, is expected to attract the interest of all domestic as well as European technical groups with a presence in the country. HRADF is the current manager of this valuable asset.

The concession concerns the main axis of 658 km, starting from the Port of Ighoumenitsa to the Greek-Turkish borders at Kipi Evrou, as well its operational vertical axes (Thessaloniki-Promachonas, Siatista-Kristalopighi and Chalastra-Evzoni), with a total length of 225 km. All in all, Egnatia features 883 km of motorway.

Today in the sector of motorways’ concessions, there is a dominance of Greek joint ventures, in the cases of Moreas Motorway, Ionian Motorway, Kentriki and New Odos Motorways (AKTOR, TERNA, J&P AVAX and INTRAKAT) and “alliances” with European groups too (i.e. Vinci and Hochtief), in Olympia Motorway, Rio Antirrio Bridge and Aegean Motorway.

However, Egnatia Motorway is considered to be the “Holy Grail” of the country’s motorway network, not only for its length (it is, by far, the longest independent motorway in the country) but also because it has been fully competed, apart from a few kilometres in the vertical axis of Chalastra-Evzoni, whose inclusion in the scope of the concession is yet to be decided.

With the original construction cost of the motorway soaring at 6bn euros, the concessionaire will have to proceed in the so-called “heavy maintenance” that has not been carried out throughout the years of its constant operation. The investor will also have to upgrade it with the construction of new parking spaces, service areas and other facilities. It is noted that, as soon as the concessionaire assumes management of Egnatia Motorway, it will receive functional toll stations across it.

A possible setback though, for the tender of Egnatia, is exactly, the installation of these toll stations, on a road that traditionally was free to use for all vehicles. On the other hand, the growth of freight transport across Europe and Greece, due to the development of Piraeus and Thessaloniki Ports, gives hopes that the traffic will remain, not only unaffected but also maintain its momentum, especially towaards the country’s main entrance points (Ighoumenitsa, Kristalopighi, Evzoni, Promachonas, Kipi).

Nevertheless, our queries regarding the concession will be resolved on January 26th, 2018, when investors will be invited to express their interest (tender’s Stage A’) and later on in the year, submit their financial offers. The concession contract for Egnatia Motorway will grant the Preferred Investor, the exploitation of the infrastructure for a period of 40 years.

 

Nikos Karagiannis-ypodomes.com

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