Ministry of Infrastructure sets Patras-Pyrgos Motorway project as top priority – Funding secured

The Ministry of Infrastructure and Transport describes a concerning image for the 8 contracts that have been recently received regarding Patras-Pyrgos Motorway project.

The relevant document notes that EU funding for the 8 contracts would definitely expire in 2023 and that even if some of them proceeded, there was a real risk for refund claims regarding the total amount of funding that it would have received till then.

In reverse, according to the document signed by the Minister of Infrastructure and Transport, Mr. Kostas Karamanlis, the project is now funded by NSRF 2021-2027 as a phasing project, which ensures the completion of the project.

It is emphasized that the reintegration of the project in the concession contract of Olympia Odos was chosen as the optimal solution and for this purpose a framework of understanding has been signed between the Ministry of Foreign Affairs and the concessionaire.

“Today, the necessary steps are being taken towards the European Commission aiming for the reintegration of Patras-Pyrgos Motorway”, is stated and in fact it is emphasized that it is absolutely clear that the political leadership of the Ministry of Infrastructure & Transport has raised the issue of Patras-Pyrgos as an absolute priority”.

The 8 contracts

According to the assessment of the Ministry of Infrastructure and Transport, the situation with the 8 contracts was as follows:

– Section 1 (Pyrgos – Douneika) – The contractor consortium TOXOTIS-CONSTRUCTION GROUP was definitely declared in default, due to its inability to provide letters of guarantee for good execution of the project.

– Section 3 (Kyllini-Amaliada) – Two applications for Cancellation and Suspension were filed with the Council of State, one of which was adjudicated while the other remained pending.

– Section 4 (Varda-Kyllini) – The contractor consortium (K / X) TOXOTIS-CONSTRUCTION GROUP was definitely declared in default, due to its inability to provide letters of guarantee for good execution of the project.

– Section 5 (Sageika-Varda) – Instead of a construction site, the Ministry received a dump! More specifically, it was found that in the area of ​​execution of the project, which had been expropriated for use by the State since 2010, a large amount of waste has been illegally deposited and therefore an indictment was filed in early July 2019 by the Public Prosecutors of Achaia and Ilia prefectures.

– Section 8 (Mintilogli-VIPE Patras) – On 10/12/2019, 3 penalty clauses were imposed on the contractor due to non-compliance with the indicative sectional deadlines, and on 16/03/2020 the contractor “GD INFRASTRUTTURE” was declared in default, according to the article 160 of L.4412/2016.

In conclusion, it is deduced that the choice of the division of the project into 8 separate contracts was catastrophic and did not benefit in any way the project. What is new in the case is that, according to the document, DG REGIO had repeatedly expressed its disagreement to the previous Government about the option of dividing the project while it had also objections to the extremely low bids (and therefore big discounts) submitted.

The case of the 8 contractors in Patras-Pyrgos Motorway, was closed by the Ministry of Foreign Affairs, on March 20, when an order was given for the dissolution of the signed Contracts (Sections 2,5,6 and 7), as well as the cancellation of the tenders for the awarding of the contracts for sections 1,3 and 4 which, after so many years, remained pending.