GEK TERNA Group set to sign contracts for the two new major infrastructure projects shortly

Egnatia and VOAK are the next major targets for GEK TERNA, which is focusing on concessions, PPPs, and extroversion. During yesterday’s shareholder general meeting, which approved the sale of TERNA ENERGY to Masdar, the group’s CEO, Giorgos Peristeris, spoke about the major projects that are coming.

Regarding the Egnatia Odos, the target remains set for the first quarter of 2025, as there are still issues to be resolved by the state, such as the certification of tunnels and the final toll stations.

As for the VOAK, the contract is expected to be signed by the end of the year, while discussions are still pending in the Council of State with the municipalities of Heraklion and Malevizi.

Mr. Peristeris noted that there has been no discussion about including the extension of Kymi Avenue in the concession for the New Attiki Odos.

Referring to other new projects, he mentioned the two waste management units: the public project for the management of Eastern Thessaloniki and the PPP waste management project for Western Thessaloniki. Additionally, TERNA is taking on two irrigation projects in Lasithi (Chochlakia) and in Xanthi (Nestos).

For GEK TERNA, the concessions and PPP sector has become the group’s main driving force, as they provide stable cash flows, which are expected to increase in the near future. This is due to the new concession for Attiki Odos having started, the Egnatia project coming in 2025, VOAK getting underway, and the IRC in Elliniko following at the end of 2027.

At the same time, the company is exploring expansion into markets outside Greece, with Bulgaria and Romania as the initial targets. According to Mr. Peristeris, significant projects worth nearly €3 billion are expected in these markets. Expanding abroad is emerging as a new trend gaining traction within the group’s activities.

Speaking about the challenges facing the projects, he noted, “In both public and private projects, we execute with the highest possible speed, so there are no delays attributable to us. Regarding the availability of personnel, this is an issue for other European countries as well, certainly in the Balkans. Each country addresses this at different speeds. For example, in Romania, around 100,000 work permits are issued annually to non-EU workers, which has been very helpful. In Greece, the processes are significantly delayed, mainly due to local consulates.”

Masdar

Regarding Masdar’s energy projects, the CEO of GEK TERNA stated that, except for the Amfilochia project, which is governed by specific terms under the agreement, for future pumped storage projects being developed by TERNA ENERGY—which are considered essential for the energy balance of Greece and the region—GEK TERNA has the right to request a 50% co-investment stake in these upcoming pumped storage projects and offshore wind farms. Currently, this includes only one offshore wind farm near Alexandroupoli, with a capacity of approximately 200 MW. Thus, GEK TERNA has the right to become a 50% co-investor on equal terms with Masdar, and TERNA will be the main construction contractor for these projects. If TERNA exercises this right, it will be obligatory.

Regarding renewable energy sources, which are vital for the economy and maintaining low electricity prices, a prerequisite for progress is the quick and effective integration of storage solutions due to the variability of RES. This includes pumped storage—a technology that has been proven for 150 years and creates significant domestic added value exceeding 70%—and batteries, a relatively recent technology that generates zero domestic added value but is still easy and quick to install, thereby contributing their share.

Finally, referring to floating wind farms, he mentioned that there is no timeline. “The state is responsible for zoning and determining where they will be located. The areas have not yet been finalized, nor the capacity for each area, or the method for selecting the companies that will undertake the development,” said Mr. Peristeris.

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