From New Prisons and Governmental Quarters to Highways: 5 Landmark PPP Tenders Transforming Greece’s Infrastructure

Five big tenders for new PPP (Public-Private Partnership) projects are expected to occupy us with the completion of their processes, as they will collectively offer over 2.2 billion euros of ‘fresh’ backlog to the country’s four major groups.

These projects include the new prison facilities in Aspropyrgos, the “Andreas Lentakis” government park, the Thessaloniki-Edessa and Drama-Amfipoli road projects, and the freight center at the former Gonou military camp in Thessaloniki.

It should be clarified that concession projects have not been included, only tenders for projects under the Public-Private Partnership (PPP) method.

These five projects are at different stages of their tender processes, and of course, the greatest challenge they face is successfully reaching the final phase — securing participation in the submission of binding offers and ensuring the financing of the projects.

In PPP projects, as well as in concession projects, there is a significant share of private financing, both through equity and loan agreements. In the case of such large-scale projects as the five mentioned above, securing financing is critical for the smooth implementation of these projects, which aim to meet important needs across different sectors of the Greek economy and society.

Let’s take a closer look at the current stage of each of the five major tenders.

New Prisons in Aspropyrgos

This is the largest tender using the PPP method and concerns the relocation of the prisons from Korydallos to the Aspropyrgos area. The tender process began on October 13, 2023. The companies that expressed interest are: AKTOR Concessions, GEK TERNA, METLEN, and AVAX.

The project’s cost, including VAT, amounts to 765.3 million euros, and the contract duration has been set at 360 months, with the first 2–4 years dedicated to the construction period.

The Special Urban Planning Scheme for the project has been approved, and the next phase of the tender process is pending. The Municipality of Aspropyrgos has filed an appeal to the Council of State (Supreme Administrative Court) in opposition to the project.

“Andreas Lentakis” Government Park

The subject of the PPP Contract is the design, financing, construction, operation, and maintenance of a new administrative complex of office buildings (“Andreas Lentakis” Government Park) in the Municipality of Dafni-Ymittos, including the development of a large urban park that will serve as a “green lung” for the wider area of the municipality.

The expressions of interest, submitted on October 25, 2024, included the following consortia: GEK TERNA S.A., the consortium “AVAX S.A. – AKTOR Concessions S.A.,” and the consortium “METLEN – AKTOR GROUP.” The total project cost, including VAT, amounts to 522 million euros. The contract duration has been set at 30 years.

Last March, the Urban Planning Scheme for the Government Park was approved, and since the beginning of the year, the three interested consortia have advanced to the second phase of the tender process.

Thessaloniki–Edessa Road Axis

This is the largest road-related PPP tender in the country. It concerns the upgrade of the Thessaloniki–Edessa axis, with a budget of 444.9 million euros. The tender process began on December 5, 2022, with the participation of GEK TERNA, AKTOR Concessions, METLEN, AVAX, and AKTOR GROUP.

Since June 2024, the tender has progressed to the second phase. We are now awaiting the continuation and the final phase of the process, which is the submission of binding offers.

The contract duration has been set at 360 months from its signing, with approximately the first 4 years dedicated to the construction period. The contracting authority is the Ministry of Infrastructure and Transport.

Gonou Freight Park

The property at the former Gonou military camp is planned to be developed into a modern freight center. The concessionaire that will be selected will be responsible for the permitting, development, construction, financing, operation, maintenance, and exploitation of the Business Park, covering a total area of 672,000 square meters.

GAIAOSE, as the project owner, assigned the Strategic Contracts Unit of the Hellenic Republic Asset Development Fund (HRADF) to conduct the tender process. The duration of the Concession Agreement will be at least thirty (30) years, and the project’s budget is estimated to reach approximately 260 million euros.

Expressions of interest for the project were submitted on November 15, 2024, by the following groups:

• Consortium “Goldair Cargo – Aktor Group of Companies”
• Consortium of Legal Entities “TRADE LOGISTICS AEBE – INTERKAT S.A.”
• NOVAL PROPERTY Real Estate Investment Company S.A.
• Thessaloniki Port Authority S.A.

Drama–Amphipolis Road Axis

Another major road PPP project, concerning the upgrade of the Drama–Amphipolis road axis, with a total length of 43 kilometers. The tender process began on December 5, 2022, with the participation of GEK TERNA, AKTOR Concessions, METLEN, AVAX, and AKTOR GROUP.

The project cost amounts to 248.5 million euros. The contract duration has been set at 360 months from its signing, with approximately the first 4 years dedicated to the construction period. The contracting authority is the Ministry of Infrastructure and Transport.

Last March, the first phase (B1 phase) of the tender was completed, and with the conclusion of the competitive dialogue, the process is now moving into the final phase, which involves the submission of binding offers for this particular project.

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