Infrastructure projects’ backlog to recede at 18.7bn euros in 2017

Backlog of infrastructure projects in Greece account for 18.7bn euros, presenting a small decrease according to the PwC Greece study “Infrastructure-Financing the Future”. The study covers infrastructure projects (transport, energy, touristic product upgrade, water supply and waste management) that are already in progress or in advanced design.

Based on the study, 11.1bn euros out of the total of 18.7bn concerns projects under development. Out of 75 projects planned to be delivered by 2023, energy projects account for 38%, railway and metro/tramway projects for 36% and road transport projects for 15%. However, 37 projects, worth 9bn euros, are being implemented without a clear completion schedule.

With regard to the infrastructure industry, the number of projects either in progress or under design, has not decreased during the crisis, with their value amounting to 18.7bn euros by 2023. Specifically, between 2014 and 2017, 25 projects with a total budget of 7.7bn euros were completed, out of which, “Olympia Motorway”, with a cost of 1.5bn and Moreas Motorway (1bn euros), both in Peloponnese, are the largest ones.

Four railway projects are at the final stage of delivery, while the upgrading of the touristic product is at an early stage of development with 62% of its planning not being completed. It appears that the main factors contributing to the lack of funding for infrastructure projects in general, are their poor planning, the slow formation of the necessary political consensus and further delays.

It is vital to stimulate investments for new infrastructure projects by effectively absorbing NSRF funds, creating incentives for the participation of the private sector, in the form of concessions and PPPs as well as by gradually increasing government funding. It is noted that NSRF (2014-2020), is expected to fund projects worth 8.7bn euros in the country.