More Than €5 Billion in Infrastructure Projects Reshape Crete, from VOAK Motorway to the new Heraklion International Airport

Crete has been placed at the center of major infrastructure projects after decades of delay. The large-scale developments currently being implemented or planned on the island are among the biggest investments taking place in the country today. These major projects are being carried out by GEK TERNA and AKTOR GROUP, which have secured these significant contracts.

With a total value exceeding €5 billion, these projects are expected to gradually transform the island’s landscape by the end of the decade, while also creating the conditions for new private investments, as a new framework for transport infrastructure takes shape.

Today, major infrastructure projects are underway across Crete, including works on the Northern Road Axis of Crete, stretching from Kissamos to Agios Nikolaos (and in the future extending to Sitia), the new airport in Kastelli, Heraklion, the electrical interconnection with Attica, student housing facilities at the University of Crete, and the Bramianos Dam. Additional large-scale projects are also in the pipeline, such as the dual dam in Lasithi.

At present, the largest active infrastructure project in the country is the VOAK. After many years of delay, all three contracts covering the sections Kissamos–Chania–Heraklion–Hersonissos, Hersonissos–Neapoli, and Neapoli–Agios Nikolaos have now been signed, with a total cost estimated at around €2.5 billion.

As previously noted, this is currently the largest motorway project in Europe. It aims to shed the VOAK’s reputation as the most dangerous road in the country and transform it into a development corridor for the island, paving the way for new investments.

Regarding the progress of works on the main section undertaken by the GEK TERNA – AKTOR GROUP – AVAX consortium, it is estimated that around five years will be required for the gradual delivery of the Chania–Heraklion segment, and possibly slightly longer for the additional Kissamos–Chania section.

The other two sections—Hersonissos–Neapoli, being constructed by the GEK TERNA–AKTOR GROUP consortium, and Neapoli–Agios Nikolaos, undertaken by AKTOR—are expected to become operational earlier. However, due primarily to issues related to land expropriations, the final project timeline remains pending.

At the same time, preparations are underway for the 55 km extension to Sitia, which has been a longstanding and unanimous request from stakeholders in Eastern Crete. The studies will be carried out by consultants, after which funding will be sought to enable the implementation of this additional section.

The Airport

The airport in Kastelli, being developed under a concession agreement by the GEK TERNA–GMR consortium, is at an advanced stage of construction, exceeding 68% completion. Two major obstacles have recently been resolved, concerning the construction of a tunnel on the connecting axis with the VOAK and the installation of the radar system, both of which had been delayed due to archaeological findings.

According to the revised timeline, construction works are expected to be completed in 2027 and, following a standard trial operation period, the new airport is likely to become operational in 2028.

The investment amounts to nearly €1 billion, making it currently the largest airport project in the country and one of the biggest in Southeastern Europe.

Once operational, it will replace the existing Nikos Kazantzakis Airport in Heraklion, which has long exceeded its capacity and is generally rated poorly in terms of efficiency.

Other projects

A major project is also the electricity interconnection cable between Attica and Crete, an investment of €1.1 billion by ADMIE. The project was completed and entered into operation last May, with a capacity of 1 GW.

It is worth noting that Crete was initially interconnected with the Peloponnese in 2021 using alternating current technology. The operation of the second interconnection marks a milestone for the island, as, combined with the Peloponnese link, it fully lifts Crete’s electrical isolation, turning it into an energy hub with significant environmental and economic benefits for both the country and the local community.

Another key project involves student housing facilities at the University of Crete through a Public-Private Partnership (PPP). This is a €255 million project with a 30-year contract duration and is the first of its kind to be implemented in Greece.

Specifically, the AKTOR Group is undertaking the project “Study, Construction, Financing, Operation and Maintenance of Student Residences at the University of Crete through PPP,” which will deliver next-generation student housing in the university campuses of Rethymno and Heraklion.

Equally important is the Bramianos Dam project. The works aim to cover the water needs of the wider Ierapetra municipality, improving water management, relieving underground aquifers, and enhancing flood protection. The €55 million project has been awarded to AKTOR.

In the coming period, the signing of the contract is expected for the dual PPP project involving the Chochlakia reservoir in Sitia and the Agios Ioannis dam in Ierapetra. GEK TERNA is the contractor for this €70 million project.

The PPP project includes two sub-projects located in the Lasithi regional unit. The first, in the Chochlakia area, αφορά the construction and operation of an earthen reservoir, along with accompanying works, to support irrigation needs in the existing networks of Palekastro and Lagada in the Itanos municipal unit of Sitia.

The second sub-project concerns the construction of the Agios Ioannis dam in Ierapetra, along with the main irrigation infrastructure works (water conveyance, distribution, and irrigation networks).

Upcoming projects expected on the island include the development of the Tavronitis River water resources, the construction of the Platy dam and irrigation network studies in Gerakari (Rethymno), the construction of a new passenger terminal at the port of Souda, the development of school infrastructure in Chania through PPP, and the construction and upgrading of judicial buildings.

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